The BOMA Magazine by lprats

Leaders in Commercial Real Estate

may/JUNE 2009

BOMA’s Green Guide Sustainability Standouts Engaging Tenants in Green Solutions

Plus:

Green Cleaning, not Green Washing BOMA Convention Preview BOMA•Kingsley REPORT on Benchmarking

May/June 2009 Volume 5, No. 3

BOMA’s Green Guide Laura Horsley

See which buildings are standing tall on energy and the environment, CoStar makes the case for green certification, engaging your tenants in sustainability.

For advertising rates and information, contact Paul Hagen at Stamats Business Media 319-861-5165. Call for Nominations: Vice Chair, Secretary/Treasurer and Executive Committee Members BOMA International’s Nominating Committee is seeking candidates for the position of vice chair and secretary/ treasurer and for five members of the Executive Committee to the Board of Governors. For further information, please contact Bob Denney, chair, BOMA International Nominating Committee, c/o Ann Coslett, BOMA International, 1101 15th St., NW, Suite 800, Washington, D.C. 20005, telephone (202) 326-6325; fax (202) 4082699; e-mail acoslett@boma.org. Volume 5, No. 3 The BOMA Magazine May/ June 2009, (ISSN 1532-4346), Copyright 2009. The BOMA Magazine is published bimonthly in January/February; March/April; May/June; July/August; September/October; and November/December by the Building Owners and Managers Association (BOMA) International, 1101 15th St., NW, Suite 800, Washington, D.C. 20005; Telephone 202-3266300; Fax 202-326-6377; www.boma.org. Periodicals Postage paid at Washington, D.C. and additional mailing offices. POSTMASTER: Send address changes to: The BOMA Magazine, Attn: List Department, 1101 15th St., NW, Suite 800, Washington, D.C. 20005. Undeliverable U.S. copies should be sent to The BOMA Magazine, Attn: List Department, 1101 15th St., NW, Suite 800, Washington, D.C. 20005. Return undeliverable Canadian addresses to: PO Box 875, STN A, Windsor, ON N9A 6P2.

About the Cover: 717 Texas, managed by Hines, is a green building standout in Houston and in “BOMA’s Green Guide.”

Conference Preview How Green is Your Clean? George Lohnes

How to avoid “green washing” BSCs by aligning résumés with reality.

Great connections equal smart solutions. Find the answers to survive this or any market cycle at the 2009 BOMA International Conference and The Office Building Show.

Special Feature: The BOMA•Kingsley REPORT

Benchmarking—You can’t manage what you don’t measure … especially in this market.

DEPARTMENTS 4

Message from the Chair

50 Sector Watch Gordon Soderlund

The “health” of healthcare real estate in the capital crunch.

Shine on.

12 14

Legislative Update BOMA brings commercial real estate’s critical message to lawmakers, the House Energy Bill heats up, the latest on “card check.”

56 Green Scene Alyssa Quarforth

State & Local Update

Check out Portfolio Manager’s e-GRID.

BOMA local associations storm state capitals, city of Albuquerque adopts 7-Point Challenge.

Codes & Standards Update

62 Eye on Education

Research Corner Not your father’s benchmarking tool— “EER 2.0” is just weeks away.

Medical Office Building Conference to address big changes and emerging trends in healthcare real estate.

ICC changes code development procedures, DOE awards billions in energy-efficiency block grants.

Trends Tracker Energy on your mind? Think alternatively.

Leading the Way

66 Buyers’ Guide

Studley Corporate Managing Director Cathy Pullen’s unique perspective on property management and what is on tap for the BOMA Convention in Philly.

20 Around the Industry CREEA takes flight, BOMA scores a sustainability double, get to know Transwestern’s Bonnie Calame.

Check out the latest industry products and services.

Conference Connection Find out why they’re calling it The “Every” Building Show.

Message from the Chair

Shine On As I approach the end of my tenure as chair of BOMA International, I can’t help but look back with pride on what we have all achieved during a year of tremendous uncertainty and devaluation in the marketplace. I knew when I took the helm a year ago that challenging times lay ahead, but few could have predicted the far-reaching impact the credit crisis would have on our industry. But there’s a reason BOMA has been around more than 100 years, and sometimes it takes a crisis—whether it’s a recession, a war or an energy crisis—to remind us that the best thing each of us gets out of our BOMA membership is each other. That access to thousands of industry peers across the country has helped so many of us keep going as we shared our stories, our strategies and our solidarity. That peer network also extends beyond U.S. borders. I visited dozens of BOMA local associations in the United States this past year, and, shortly after this magazine hits your desk, I will be visiting our BOMA colleagues at the British Council for Offices and at the South African Property Owners Association to learn how they are coping with the international credit crisis and what lessons they are taking away as they begin to recover. It’s further evidence to the power of globalization and the shrinking world we live in. It has been gratifying to see BOMA members answer the “Now More than Ever” rallying call. We saw evidence of that during the National Issues Conference this past March in Washington, D.C., where we enjoyed one of our largest turnouts ever as we took over the halls of Capitol Hill to let lawmakers know that behind a healthy economy is a thriving commercial real estate industry. Despite the tough times, BOMA members continue to rely on BOMA for the effective business solutions we have continued to provide to help property

professionals meet the challenges of the credit crisis head on. Innovation and efficient operational management are what will make the difference when we come out even stronger on the other side, and our green initiatives are a prime example of that progress. In the past year, BOMA has elevated its status as the industry’s energy-efficiency leader. We recently took home our third straight ENERGY STAR® award, as well as the 2009 EPA Climate Protection Award—one of the U.S. Environmental Protection Agency’s highest honors. And in this issue of the magazine, our annual green guide, you can read about several commercial buildings that are true sustainability standouts (see pages 26-30) and learn their secrets to success. When you come to the BOMA International Conference and The Office Building Show this June in Philadelphia, you will see first hand how you can put the industry’s leading green strategies to work for you. But sustainability is just one piece of the puzzle as we work together to strengthen our industry. At the convention, you will walk away with the tools you need to operate your buildings more effectively on every front, from managing with less and tenant relations to operational efficiencies and leading your team to succeed. I am confident that this time will be remembered as one of BOMA’s shining moments—when we didn’t wait for the dust to clear but, instead, cleared our own path forward. Thank you for supporting our great industry. I’ll see you in Philadelphia!

Richard D. Purtell, RPA Chair and Chief Elected Officer

4 BOMA May/June 2009

Publisher: Lisa M. Prats, CAE Editor: Laura Horsley Associate Editor: Lindsay Tiffany Contributing Editors: Karen W. Penafiel, CAE, Ronald Burton, James Cox, Lorie Damon, Ph.D., Noel Popwell, Emily Naden, Dave Johnston Designer: Amy Belice Published by: Building Owners and Managers Association (BOMA) International

BOMA International Officers Chair and Chief Elected Officer Richard D. Purtell, RPA Grubb & Ellis Management Services, Inc. Cincinnati, Ohio Chair-Elect James A. Peck, RPA, FMA CB Richard Ellis Albuquerque, N.M. Vice Chair Ray H. Mackey, Jr., RPA, CPM, CCIM Stream Realty Partners, LP Dallas, Texas Secretary/Treasurer David M. Stucky City of San Diego San Diego, Calif. President and Chief Operating Officer Henry H. Chamberlain, CAE, APR BOMA International Washington, D.C.

The cost for The BOMA Magazine is $75 a year for subscribers and $50 a year for BOMA International members. Publication of advertising should not be deemed as endorsement by BOMA International. The publisher reserves the right in its sole and absolute discretion to reject any advertisement at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA International, its members or its staff.

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legislative UPDATE

NIC delegates get briefed on BOMA’s 2009 legislative agenda.

2009 National Issues Conference Recap: BOMA Brings Commercial Real Estate’s Critical Message to Lawmakers BOMA members brought commercial real estate’s urgent message to Capitol Hill lawmakers as part of BOMA’s National Issues Conference (NIC), March 23-24 in Washington, D.C. With a floundering economy, high unemployment and uncertainty in the financial markets, BOMA members met with their representatives and senators to explain the critical role commercial real estate plays in a thriving economy and to gain support for key issues affecting the industry. BOMA members had more than 120 meetings with members of Congress and their staff as they outlined BOMA’s 2009 legislative agenda, including commercial real estate’s stake in such issues as leasehold depreciation, capital gains taxes, carried interest taxes, energy and climate change policy and “card check.” “Many of the issues we are advocating for on Capitol Hill have a significant impact on investment, job creation and economic growth,” observed BOMA International Chair and Chief Elected Officer Richard D. Purtell, portfolio manager, Grubb & Ellis Management Services, Inc. “It is more important than ever that we make our collected voice heard in the halls of Congress.” In addition to meeting with legislators, NIC serves as an opportunity for BOMA members to get the latest political forecasts and trends from Washington insiders. On the program this year was House Majority Leader Steny Hoyer (D-Md.), who delivered a message of optimism and partnership. “Because commercial real estate is such a big part of GDP, from the nine

6 BOMA May/June 2009

House Majority Leader Steny Hoyer (center) with BOMA President Henry Chamberlain (left) and BOMA Chair Dick Purtell.

billion square feet you own and manage to all the jobs you create, you’ll lead, with our help, on the road to economic recovery,” said Hoyer, who also commended BOMA on its energy-efficiency and sustainability initiatives. “Your 7-Point Challenge commitment to reduce energy consumption in your buildings by 30 percent by 2012, your BOMA Energy Efficiency Program (BEEP) and Sustainable Operating Series (SOS) and your green lease program are all things that fit with what President Obama wants to achieve.” Atlantic Media Company’s Political Director Ron Brownstein delivered the keynote address, offering a detailed look at how today’s political landscape was shaped and citing the challenges both parties face in the coming months. Brownstein stressed that, while there has been a sizable shift in power to Democrats, their challenge will be to continuously Ron Brownstein gives NIC attendees an insidbuild broad, farer’s glimpse into Washreaching support ington politics.

for their issues. “It is not easy to build broad coalitions, but the magnitude of our challenges makes it important that those in power reach out and that we reach back,” he said. NIC delegates also heard from Rep. Mike Rogers (R-Mich.) and Rep. Steve Driehaus (D-Ohio). Both emphasized the critical role of public-private collaboration in achieving economic recovery. “I’m so glad you’re here, because no one knows better than you the impact of policies on your business,” remarked Rogers. “Congress needs to hear from you.” Rogers is a strong advocate against the Employee Free Choice Act, also known as “card check,” saying it is un-American to take away the secret ballot and believes it could cause workers to feel intimidated. Driehaus underscored the importance of reaching out to lawmakers, at the local level as well as on Capitol Hill. BOMA Chair-Elect Jim Peck, who met with lawmakers from New Mexico, found the NIC to be a vital part of BOMA’s advocacy mission and was pleased with the feedback he received on Capitol Hill. “It was a great experience and they were very receptive,” said Peck. “They were especially interested in BOMA’s energy issues.” Diana Lacy with BOMA/Greater Little Rock enjoyed seeing democracy at work. “It was a terrific learning experience and we enjoyed seeing how the process works. It was great seeing all the people petitioning government and expressing their views, and being a part of that.”

Continued on page 8

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legislative UPDATE House Energy Bill Takes Shape On March 31, Chairman Henry Waxman, of the Energy and Commerce Committee, and Chairman Edward J. Markey, of the Energy and Environment Subcommittee, released draft energy legislation that they hope will create jobs, reduce dependence on foreign oil and combat global warming. The American Clean Energy and Security Act of 2009 (ACES) is a far-reaching bill that includes several provisions that will impact commercial

buildings’ energy use, as well as a capand-trade program. Specifically, the legislation has four titles: • A clean energy title that promotes renewable sources of energy, carbon capture and sequestration technologies, low-carbon fuels, clean electric vehicles and the smart grid and electricity transmission; • An energy-efficiency title that increases energy efficiency across all sectors of the economy, including buildings, appliances, transportation and industry; • A global warming title that places limits on emissions of heat-trapping pollutants; and • A transitioning title that protects U.S. consumers and industry and promotes green jobs during the transition to a clean energy economy. Within the energy-efficiency title of the bill, there are four provisions that directly affect BOMA members. The first would set targets for nationwide energy savings by requiring a 30-percent increase (in comparison to ASHRAE 90.12004) in editions of each model code or standard released after the bill is passed, and a 50-percent increase in editions of each model code or standard released after Jan. 1, 2016. If the Energy Secretary makes the determination that these targets are not met, then the Department of Energy would establish its own modified code or standard that meets the targets. BOMA International strongly opposes arbitrary targets, as well as the federal government taking over the role of codes developer. Also in the bill are incentives for energy-efficiency retrofits, which BOMA supports, as well as a provision directing the Environmental Protection Agency (EPA) to establish a building energy performance labeling program for both residential and commercial markets. BOMA does not have a position on building labeling at this time. The BOMA-supported final provision directly affects commercial real estate and would establish a federal energyefficiency resource standard (EERS) for retail electricity and natural gas distributors. The legislation recognizes that

Continued on page 10

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legislative UPDATE significant energy-efficiency improvements can be made for much less than the cost of renewable energy or constructing new power plants, and that utilities and states should consider energy efficiency as a resource in utility planning and procurement activities and should seek to achieve all energy efficiency that is available at lower cost than energy supply options. If enacted, retail electricity distributors would be required to achieve an electricity savings

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Prospects for ‘Card Check’ Bill Weaken The outlook for possible passage of “card check” legislation grew less likely last week as Senator Arlen Specter (R-Pa.) announced that he would oppose the Employee Free Choice Act, or EFCA (H.R. 1409/S. 560). Specter was the only Republican to cast a vote for cloture in 2007 and was needed to do the same again in 2009 in order for the bill to move to an up or down vote. There are currently 41 Republican senators who all generally oppose the “card check” bill, preventing the Senate from obtaining the 60 votes needed to reach cloture. Specter’s announcement came shortly after BOMA members from Pennsylvania met with his staff expressing their opposition to EFCA. The Employee Free Choice Act would change the process by which unions are formed and recognized. Union organizers would simply need to gather signatures from more than 50 percent of the employees in a workplace or bargaining unit in order to require management to recognize the union as the bargaining agent. BOMA International will continue to be vigilant in opposing the “card check” bill as debate over the legislation continues.

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Prior to adjourning for their spring recess, the House and Senate approved their respective budget blueprints, both coming down on partisan lines, with not one Republican voting for either chamber’s proposal. Both of the respective proposals cost nearly $3.5 trillion; however, the House version includes socalled “reconciliation” instructions that could be used to protect controversial tax increase proposals from potential filibuster in the Senate (by requiring only 51 votes, instead of the usual 60). This could include carried interest legislation (H.R. 1935), recently reintroduced today by House Ways and Means Committee Member Sander Levin (D-Mich.). The same provision is included in the President’s proposed FY 2010 budget and would amount to a significant tax increase on commercial real estate partnerships, which BOMA International continues to oppose.

state & local update

BOMA Local Associations Storm State Capitals BOMA local associations are making great strides in bringing commercial real estate’s concerns to elected officials across the country. Part of this effort includes hosting an advocacy day, which provides an opportunity to bring the industry’s priority issues straight to legislators. In recent months, several Members of BOMA Texas with State Senator John Carona.

nextGen

8/1/07

12:53 PM

local associations have held Advocacy Days, including BOMA Texas and BOMA Florida. Eighty commercial real estate leaders converged on Austin in March for the BOMA Texas Statewide Legislative Advocacy Day. The bi-annual event supports the association’s primary objective, which is legislative and regulatory advocacy at the state level. Commenting on the role constituents play in the legislative process, Clint Harrington, president of BOMA Texas, said, “There is nothing more effective than BOMA members talking directly to elected officials about the issues of interest to the profession.” BOMA Texas’ 2009 legislative agenda includes supporting both margin and property value appraisal reform, opposing appraisal caps and mandatory sales price disclosure and advocacy for energy-efficiency incentives rather than mandatory retrofitting. The meeting also featured Representative John Otto, vice chair of the Texas House of Representatives Ways & Means Committee, who discussed his effort to improve the state’s property appraisal districts. BOMA Florida also held its State Issues Conference in March. Representatives from all BOMA locals in the state attended the event. This year, the association’s priority issues focused on energy and sustainability, building codes, commercial property taxes, growth management and catastrophe insurance. Florida House Speaker Pro Tempore Ron Reagan and Representative Dean Cannon addressed the meeting attendees, where they discussed ways in which the business community can bolster the state’s economic recovery. BOMA Florida members were also

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able to leverage their visit to the capital by gaining industry representation on the Florida Building Commission’s Energy Codes Committee. “The more industry is represented in the Capitol, the more legislators rely on us for information,” said BOMA Florida President Jack Goodrich. “Instead of constantly fighting onerous issues, we’ve become part of the solution.”

Albuquerque Signs on to the 7-Point Challenge

In recognition of the impact commercial real estate has made in reducing greenhouse gas emissions,

Albuquerque Mayor Martin Chávez recently announced the city’s endorsement of BOMA International’s 7-Point Challenge. The mayor made the announcement at Paseo Nuevo, an 110,000-square-foot Class A office building, which is seeking LEED Silver certification. “Paseo Nuevo fits in with what the mayor is trying to achieve in the city,” said Leslie Yardman, a property manager with Zia Rising Management Ltd. Co. and BOMA New Mexico’s president. Among the building’s sustainable features is a geothermal well system, which is used to heat and cool water and replaces the use of natural gas. Albuquerque has been at the forefront of the green movement. The city created the AlbuquerqueGreen program, which is a comprehensive sustainability plan that provides tools for energy conservation, clean energy production and use and conservation technologies. In 2008, AlbuquerqueGreen garnered a Sustainable Community Award from the U.S. Chamber of Commerce and Siemens.

From left: Albuquerque Mayor Martin Chávez, BOMA New Mexico President Leslie Yardman and BOMA International Chair-Elect Jim Peck.

“The leadership shown by Mayor Chávez positively impacts our community, as the city looks to achieve the benefits of sustainability—environmental conservation, community benefits and financial savings,” says BOMA International Chair-Elect James A. Peck, RPA, FMA. Albuquerque became the second U.S. city to endorse BOMA International’s 7-Point Challenge (following Phoenix late last year). BOMA/Atlanta and BOMA Nevada also endorsed the Challenge in recent months.

May/June 2009 BOMA 13

Federal agencies’ update ICC Changes Code Development Procedures The International Code Council (ICC) has extended the code change proposal deadline for the 2009-2011 code development cycle to June 1, 2009. This extension of the traditional April deadline coincides with major changes to the ICC code development process that ICC is implementing after several years of input from members and industry representatives. Highlights of the plan include:

• Maintaining the traditional three-year publication cycle. • Maintaining the ICC Governmental Consensus Process—open to all interested parties, but with a final vote on code changes only by governmental members (primarily state and local code and fire officials). • Dividing the cycle into two groupings, with each group having public hearings and final action hearings occurring in the spring and fall of the same year during the first two years of the publication cycle. • An unveiling of the revised codes at the ICC Annual Conference in the third year. • Holding public hearings at the same central location every April/May. • Holding all final action hearings at the ICC annual conference at locations that will continue to rotate through the four quadrants of the United States in late October/early November. The plan addresses the most frequently voiced concerns raised during the review process, including:

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• Reducing the length of the public hearings—changes should result in code development hearings of seven days vs. the current 15-day schedule. • Increasing participation at both the public hearing and final action hearings. • Maintaining the importance of in-person attendance and participation. • Increasing the importance of assembly actions at the public hearings. • Maintaining or increasing educational offerings at annual conferences. BOMA made its opinion known during the development of these new procedures and will continue to work to make these and other needed procedural changes acceptable to both building owners and building officials alike. For more information on the submission of code change proposals, contact BOMA staff (Ron Burton at rburton@ boma.org or Dave Johnston at djohn ston@boma.org), or visit the ICC Web site at www.iccsafe.org/cs/codes/ publicforms.html. Continued on page 16

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Federal agencies’ update

DOE to Award $3.2 Billion in Energy-Efficiency Block Grants Significant new funding will soon be available for state and local energy-efficiency programs. With the largest infusion of funding for the Energy Efficiency and Conservation Block Grant program in history, the U. S. Department of Energy plans to distribute $3.2 billion for energy-efficiency and conservation projects in U.S. cities, counties, states, territories and tribal lands. Funded by the recent stimulus legislation—the American Recovery and Reinvestment Act—the program will provide grants for projects that improve energy efficiency and reduce fossil fuel emissions, such as energy audits and energy-efficiency retrofits in residential and commercial buildings; the development and implementation of advanced building codes and inspections; and the creation of financial incentive programs for energyefficiency improvements.

16 BOMA May/June 2009

Cities and counties will receive nearly $1.9 billion under the block grant program, while states and territories will receive nearly $770 million. In addition, up to $456 million will be made available for local energy-efficiency projects under a separate program to be launched later this year. For more information, contact Ron Burton rburton@boma.org or visit www.eecbg.energy.gov.

Cathy Zoi Nominated as DOE Assistant Secretary of EERE President Barack Obama announced his nomination of Cathy Zoi as DOE’s assistant secretary for Energy Efficiency and Renewable Energy (EERE). The EERE office is responsible for programs targeting commercial and residential buildings, energy codes and standards and other activities of concern to BOMA members. Zoi is currently chief executive officer of the Alliance for Climate Protection, established and chaired by former Vice President Al Gore. The Alliance leads a multimillion-dollar effort to emphasize the urgency and solvability of global warming. Zoi also served as the chief of staff in the White House Office on Environmental Policy in the Clinton-Gore Administration, and earlier served at the U.S. Environmental Protection Agency, where she pioneered the ENERGY STAR® program.

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Market Perspectives from Catherine Pullen Corporate Managing Director Studley CATHERINE PULLEN IS CORPORATE MANAGING DIRECTOR AT STUDLEY, a leading commercial real estate firm representing tenants. She has a unique perspective on the industry, having worked in property management and more recently as a tenant representative. She is a current member of BOMA International’s Executive Committee, and has been extremely active with BOMA/Philadelphia and the Middle Atlantic Region of BOMA for years. She is the chair of BOMA-MAC (the Middle Atlantic Conference), a member of BOMA International’s Awards Committee and a past president of BOMA/Philadelphia.

How has working on both the management and tenant representation sides of the industry changed your perspective? I don’t think they are that different. When I worked in property management, our focus was always on customer service. I realized I had strictly stayed on one side of the fence, so I thought I’d like to go see what the tenant side is all about. We have a lot of large corporate clients who have the same real estate needs. Because of my background, I can approach their needs from the landlord’s perspective, which most folks in this job cannot do.

How are you helping clients stay afloat during the recession? We’ve done a lot of research on the last couple of recessions, which is helping us provide information to our clients. We’re keeping a watch on each of the markets we work in, and categorizing them by what shape they are in—whether they’re

18 BOMA May/June 2009

in critical or stable condition. There are some markets that are fairly stable, and Philadelphia happens to be one of them. It doesn’t have the huge spikes and dips that other markets have. Nobody can predict the bottom or the best deal, but the research we provide can help our clients be within range.

Your hometown of Philadelphia will be hosting the BOMA conference and tradeshow in June. Why is this a “can’t miss” event despite the tough economy? The education seminars, the speakers and the tradeshow are all going to be wonderful and will really help people get through this tough market because the show is centered on helping managers and owners understand what’s going on. From a networking aspect, it’s interesting and important to talk with people in different regions to see how their market is doing. For instance, you might learn how some managers are dealing with tenants just getting up in the middle of the night and leaving. It’s helpful to know how they are dealing with those issues and to find out what’s working. Plus, Philadelphia is a great city and we’ve got a terrific opening party planned at the new National Constitution Center, which is a wonderful venue. There will be a few surprises in store and some visits from “historic” people.

What drives you to be such a strong advocate and volunteer, and what are some of your most important accomplishments? You have to have passion for the industry and be a strong advocate for it. When you start in real estate, you get drawn into these organizations. BOMA has always demonstrated great leadership for managers and owners, so you gravitate there to get the information you need for all your issues. When I was president of BOMA/Philadelphia, we created a long-range strategic plan, which I believe they are still operating under today. That plan was visionary and forward-thinking and I’m very proud of it. With that plan, we were ahead of the BOMA One policies. Our members were telling us that BOMA/Philadelphia events were not providing for networking among regular members, so we really focused on the ratios and turned that around. And then we got our associates very involved, which is what you have to do for that perception to go away.

What is the best thing you get out of your BOMA membership? Being in a leadership role and on the Executive Committee, I really appreciate the connections I get from my membership. I love talking with people from across the country so I can understand what’s happening in their markets and how they are being innovative. The other thing is the advocacy. It’s important to know what the next big issues are. I think the tax and depreciation issues are very important, especially if we want the owners to be a strong contingency within BOMA.

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Around the industry

CREEA Kicks Off in New York City BOMA International’s Chair and Chief Elected Officer Richard Purtell and President and Chief Operating Officer Henry Chamberlain met with Department of Energy (DOE) officials and top executives from 18 other commercial real estate companies at 7 World Trade Center in New York City on April 9 to discuss how to dramatically reduce the sector’s energy consumption and greenhouse gas emissions. The meeting officially launched DOE’s Commercial Real Estate Energy Alliance (CREEA), a collaboration of commercial real estate owners and operators who have volunteered to work directly with each other and with DOE to exact lasting change in the energy consumption of commercial real estate buildings in the United States. The energy alliance links building owners and operators with research and technologies emerging from DOE national laboratories. It serves as a national forum

From left: BOMA Chair Dick Purtell, BOMA Vice President of Advocacy Karen Penafiel and BOMA President Henry Chamberlain attend the April 9 launch of CREEA in New York City.

in which best practices in energy efficiency are documented and publicized and where peers can share practical experiences and insights. It also serves as a collective buying voice to influence suppliers of building materials to create more energy-efficient equipment. A few days before the CREEA launch, Former President Clinton, New York City Mayor Bloomberg and a team of building industry experts announced that the

Empire State Building would be used as a test case and model for analyzing and retrofitting existing structures for environmental sustainability. The program, which involves the Clinton Climate Initiative, Rocky Mountain Institute, Jones Lang LaSalle and the Empire State Building Company, is expected to reduce energy consumption by up to 38 percent and will provide a replica model for similar projects around the world.

Twice as Nice—BOMA Receives Sustainability Honors

The BOMA team receives the prestigious EPA Climate Protection Award during a ceremony at the Kennedy Center.

BOMA International was honored by the Environmental Protection Agency (EPA) with the prestigious 2009 Climate Protection Award, which recognizes exceptional leadership, outstanding innovation, personal dedication and technical achievements in protecting the climate. Candidates are selected from all over the world and winners are chosen on the basis of originality and public purpose; persuasive, moral or organizational leadership; global perspective and implication; and reduction in greenhouse gas emissions. BOMA received the award for the success of several programs, including BEEP, the 7-Point Challenge, BOMA’s Green Lease and the BOMA Energy Performance Contract model. BOMA also scored an ENERGY STAR® “Three-Peat” in March, when it received the 2009 ENERGY STAR Award for Sustained Excellence. Several BOMA member companies were also honored: Akridge, CB Richard Ellis and TIAA-CREF all received the Partner of the Year Award; Hines, Transwestern and USAA Real Estate Company were honored with the Sustained Excellence Award. This is the third consecutive year that BOMA has been recognized by ENERGY STAR. BOMA is still the only commercial real estate association to receive this honor. Have You “You Tube’d” BOMA Yet?—See footage of BOMA Immediate Former Chair Brenna Walraven at the Climate Protection Awards and BOMA Chair Dick Purtell at the ENERGY STAR Awards on BOMA International’s YouTube Channel at www. youtube.com/bomainternational. Continued on page 22

20 BOMA May/June 2009

Financing the Future: Paying for Your Renewable-Energy Installation

A brief from NECA’s Electrical Design Library Summer 2009

enewable-energy technology is advancing at a rapid clip. What’s not widely known is that financing options for those who wish to own/operate solar, wind and other energy-generating equipment are evolving just as quickly. Energy systems are becoming less expensive. Third-party financiers are becoming more common. Further, the American Recovery and Reinvestment Act— which people in early 2009 were calling the “stimulus package”—adds more government incentives to the pot. Making sense of your financial choices takes some homework though, and likely more than a few phone calls, including at least one to your accountant. Options vary from state to state, and even between utilities within states. What’s required now is an investment of time to understand your choices. Such a savvy investment could end up repaying you for years, in the form of reduced energy expenses. There’s an additional payback, of course: You’ll be contributing to the goal of reduced greenhouse gas production and foreign energy dependence. In this brief overview, we’ll examine select financing opportunities available to building owners who are considering a renewable-energy installation on their property.

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Around the industry BOMA International Testifies Before Congress on Growing Credit Crisis BOMA International Chair and Chief Elected Officer Richard D. Purtell, RPA, testified before Congress on March 20 on the growing commercial real estate credit crunch and the General Services Administration (GSA), with a specific focus on the challenges of leasing and building during an economic crisis. Purtell represented BOMA International and the Apartment and Office Building Association (AOBA) of Metropolitan Washington, D.C., before a hearing of the House Subcommittee on Economic Development, Public Buildings and Emergency Management of the Committee on Transportation and Infrastructure. RF-BOMA-2HRZ.pdf 4/6/09 4:07:30 PM

BOMA Chair Dick Purtell testifies for a second time this year on how the credit crisis is affecting commercial real estate.

Purtell explained to Chairman Eleanor Holmes Norton and members of the subcommittee that the U.S. property market is facing its worst liquidity challenge since the Great Depression. “With virtually no liquidity, commercial borrowers face a growing challenge of refinancing maturing debt and the threat of rising foreclosures and delinquencies,” said Purtell during the testimony. “We are faced with the dual challenge of developing strategies to stop the downward spiral and restoring confidence in markets.” Purtell stressed that the time to act is now, emphasizing that it is imperative to enact measures that will enable financial institutions to effectively restructure their balance sheets, to take toxic assets off banks’ book and to start lending again on solidly underwritten transactions. This is the second time BOMA has been asked to testify before the House Subcommittee on this issue. Last July, BOMA International was one of the first real estate organizations to testify before Congress on the effects of the credit crunch on commercial real estate. To read the full testimony, visit www. boma.org.

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John Kelly Named to NIBS Board Congratulations to Former BOMA International Chair John P. Kelly, executive vice president of Ryan Companies US, Inc., who was recently named a member of the National Institute of Building Sciences (NIBS) Board of Directors. Chair of BOMA International for 2003-2004, Kelly has more than 30 years of experience in commercial real estate, is a member of both BOMA/Minneapolis and BOMA/St. Paul and is a recipient of BOMA International’s President’s Award. Continued on page 24

22 BOMA May/June 2009

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Around the industry Member Spotlight:

Bonnie Calame

In this inaugural segment of BOMA’s “Member Spotlight,” Transwestern Senior Property Manager Bonnie Calame, a BOMA/Suburban Chicago member, shares with BOMA how she gets the most value out of her membership. TBM: What do you see as the most important benefit of your BOMA membership?

BONNIE: It’s a tie between the professional networking and the education. I love BOMA because it enables me to make so many professional connections. When I have an opening or need to talk to a colleague, I know who to call, and there is no question that those BOMA contacts will be good candidates. The education sessions are also great. I try to attend as many as possible because the programming is always relevant. TBM: How did you become a member? BONNIE: I started working in commercial real estate in the suburban-Chicago marketplace in 1993. I joined BOMA in 1995 and became active around 1997. Since then, I attend our local events as regularly as possible, and even served on BOMA/Suburban Chicago’s Membership Committee in 2005. Membership has been a valuable tool in my career.

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BONNIE: I really enjoy the Engineer’s Dinner put on by BOMA/Suburban Chicago. I attend every year. I like it because it honors those who are behind the scenes and who don’t necessarily get recognized as much as they should. I think the dinner is a great way to show our appreciation as property managers for all the hard work that our engineers do. Look for it—BOMA Member Spotlights will be featured in upcoming issues of “The BOMA Magazine.” If there is someone you think we should feature, let us know at lhorsley@boma.org.

In Memoriam: Walter Raine The property industry in Australia recently lost one of its pioneers with the death this past November of Walter Raine. He was 78. Raine was an attorney and advisor to the founders of the Building Owners and Managers Association of Australia, what is now the Property Council of Australia. In a recent article, Peter Barda, former CEO of the Property Council of Australia, described Raine as “one of the few remaining behemoths of commercial property investment and development in Australia.” Raine attended many BOMA International conventions, chaired the BOMA International International Region Committee and was instrumental in growing BOMA International’s International affiliates. He is survived by his wife, Betty; son, Ian; and daughter, Sally.

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BOMA’s Green Guide By Laura Horsley

Commercial real estate is getting greener by the day, and the leaders and innovators in energy efficiency and sustainability are finding that tenant retention and operational savings are just some of the “green” benefits that are helping them weather a tumultuous market cycle. In The BOMA Magazine’s third annual “Green Guide,” we profile a handful of buildings that are standing tall on energy and the environment, look at how one ENERGY STAR® awardwinning company is making the business case for green certification and offer strategies to actively engage your tenants and clients in your building’s success.

26 BOMA May/June 2009

FBI Chicago Regional Headquarters Chicago, Ill. Managed by USAA Real Estate Company and owned by USAA Real Estate Company GB Fund Energy Strategies: In December 2008, the FBI Chicago Regional Headquarters was awarded the USGBC LEED for Existing Buildings: Operations & Maintenance (LEED EBOM) Platinum certification. Its ENERGY STAR score is a remarkable 95. Energy-efficiency strategies are used throughout the building, but the heart of the success came from a comprehensive building commissioning plan that includes investigation and analysis, implementation and ongoing commissioning of the building equipment to ensure it runs at the highest level of efficiency. Additional submetering of major systems and equipment allowed for better management and efficient use of equipment. Sustainable Strategies: More than one acre of non-native turf/grass was eliminated from the site and sustainable native plantings were installed in its place—in fact, 50 percent of the site area is landscaped with native and adapted sustainable plantings. These areas do not have to be mowed, trimmed, fertilized or irrigated. Overall water use in the building was reduced by 43 percent, resulting in a reduction of more than three million gallons of water use in one year. Changes that

made this possible include replacing all aerators in bathrooms and break room sinks, installing low-flow flush valves in all urinals and installing an updated rain gauge moisture sensor on the irrigation system. Building management worked closely with the FBI leadership and buillding occupants on the building’s recycling program. A tenant recycling committee helped expand the program, and more than 70 percent of waste was diverted from the landfill and was recycled and reused. A comprehensive Green Cleaning Policy was instituted with management audits of on-site cleaning products and equipment, along with more than 90 percent of cleaning products and materials being documented as sustainable. The Bottom Line: USAA’s approach to sustainable efforts is to drive the business case. The building has reduced energy use by more than five percent. The cost for implementing simple water conservation changes was less than $5,000, with a simple payback of less than eight months. Further, USAA came in under budget on all expenses by saving more than they spent to implement a comprehensive sustainable strategy.

717 Texas Houston, Texas Managed by Hines and owned by Block 59 Limited Partnership Energy Strategies: A building management system at 717 Texas helps control lighting and temperature, and VFDs (variable frequency drives) are on almost all levels of the building. Energyefficient lighting and occupancy sensors are used throughout the building. Energy performance is tracked through ENERGY STAR Portfolio Manager, as well as internally through a Hines’ utility and maintenance measurement tool. 717 Texas is LEED Silver certified and has an ENERGY STAR rating of 86. Sustainable Strategies: Nearly anything leaving the building is recycled—paper, plastic, batteries, light bulbs and such durable goods as computers and copiers. The building is eight percent more water efficient than the codes require—a success made possible by using fixtures and aerators that have helped reduced water consumption in sinks (from 2.2 gallons/minute to one gallon/minute) and urinals (from 1.6 gallons/minute to one gallon/minute). Drip sprinklers are used in landscaping, and water softeners are used to increase cycles for cooling towers. An Earth Day ice cream social includes CFL and “green” plant giveaways. Tenants are sent reports on recycling and water and energy savings. The Bottom Line: Typical payback on expense items is about one year. Green strategies have been a plus during the recession, giving 717 Texas a leg up on the competition by being more energy efficient.

One Washingtonian Center • Gaithersburg, Md. Managed by Transwestern and owned by LaSalle Investment Management Energy Strategies: One Washingtonian Center is the first LEED EBOMcertified building in the D.C. Metro area. When Transwestern enrolled the building in the ENERGY STAR program shortly after taking over management in 2004, the building had a score of 57 out of 100. Today, after several energy-saving initiatives, the ENERGY STAR score is 79. These initiatives included the installation of VFDs on air handler units and water condenser pumps; retrofit of light fixtures with energy-efficient light bulbs; installation of occupancy sensors; and reactivation of an automated lighting control system. The building management also negotiated with tenants a reduction in the actual HVAC hours of use as stipulated in leases, thus reducing energy consumption. Sustainable Strategies: Waterefficient fixtures and automatic faucets were installed in all restrooms and pantry sinks. A comprehensive recycling program includes paper, cardboard, metal, plastic, batteries, ballasts and electronic waste. A fluorescent bulb crusher is used to dispose of 600 pounds of bulbs annually in a way that eliminates exposure to mercury. All together,

more than 50 percent of the building’s total solid waste is recycled. Restroom paper products contain post-consumer and/or post-industrial recycled material, and 90 percent of all cleaning products meet Green Seal standards. Earth Day events include a compact fluorescent bulb exchange through which tenants exchange standard bulbs for energyefficient CFLs; giveaways of pine tree saplings and green cleaning products; an interactive Earth Day quiz; and test drives of hybrid vehicles. Future projects include an elevator modernization, which will reduce elevator electrical use by 40 to 65 percent; designation of preferred parking spots for car pools and alternative fuel vehicles; and the installation of a water pump to use water from a storm water retention pond for irrigation. The Bottom Line: One Washingtonian Center is a leader in energy efficiency and environmental stewardship, which hasn’t hurt the building’s bottom line with $142,000 in a real estate tax refund for recycling, $33,523 in annual savings from the installation of VFDs and $7,349 in annual savings from the garage lighting retrofit project. Continued on page 28

May/June 2009 BOMA 27

The Green Building ‘No Brainer’ CoStar Group, the industry’s largest real estate information company, was recently honored with a 2009 ENERGY STAR Partner of the Year award for denoting ENERGY STAR-labeled and LEED-certified properties in its commercial property database of approximately 66 billion square feet. That project resulted in CoStar sponsoring the first accredited study on the market value of green-certified properties, which found that those green buildings have higher lease rates, occupancy levels and sale prices than non-certified peer buildings. CoStar Group President and CEO Andrew C. Florance thought it was important to create a database of greenlabeled buildings readily available for people when they are considering office space or retail space. “When you CoStar Group President and CEO buy a fridge, there’s an Andrew C. Florance energy consumption label that allows buyers to make educated decisions,” explains Florance. “When leasing space, a tenant is often presented with 10 or 12 buildings to tour in one day; by the end of the day, they can’t even remember the address. We wanted to take this information and have it right there and available for our customers.” According to Florance, with more and more local governments requiring that their public buildings be ENERGY STAR labeled or LEED certified, an increasing number of Fortune 500 companies instituting sustainability programs and with the limited stock of green-certified buildings in the market, it’s simply a no brainer for an owner to spend a couple thousand dollars to see if they qualify for an ENERGY STAR label. “It’s the easiest, best investment you can make in this environment to find out if your building can make an ENERGY STAR—or could with minor, low-cost improvements.” Energy-efficiency and sustainability strategies will be just one of the discussion points when Florance moderates the “Searching for Value in all the Right Places” Opening General Session at the BOMA International Conference in Philadelphia this June. “It’s going to be a good discussion of what’s working and not working out there,” says Florance, “looking at the trends we’re dealing with, as well as a bit of the crystal ball as to the way out of the woods.”

28 BOMA May/June 2009

3675 Crestwood • Duluth, Ga. Managed and owned by Melaver, Inc. Energy Strategies: The building is both ENERGY STAR and LEED EB certified. Energy benchmarking is performed through ENERGY STAR Portfolio Manager to help measure and easily track building performance against buildings of similar size, type and location. Light bulbs throughout the building were replaced with efficient 25-watt Philips Alto bulbs—reducing energy consumption from lighting by 25 percent. Motion sensors were installed in bathrooms and common area hallways to control lighting. To reduce heat gain and improve building aesthetics, tinted window film was added to exterior windows. The chiller was re-commissioned to ensure that it was functioning properly. Sustainable Strategies: Tenants participate in a comprehensive building recycling program, collecting paper, plastics, metals, glass, cardboard, batteries and fluorescent lights. Water consumption was reduced approximately 40 percent through the installation of waterless urinals, low-flow toilets and 0.5 gpm faucet aerators on motion sensors. Further, the installation of drought-

resistant plants significantly cuts back on irrigation. Indoor air quality is a priority at 3675 Crestwood, where only low-VOC paints/sealants/adhesives are used on any improvements in the building. Additionally, all carpet is CRI Green Label Plus certified, and only Green Seal-approved chemicals are used. Mass transit route maps are posted in the building and numerous parking spaces are dedicated to car poolers—which is tracked online through a partnership with the Clean Air Campaign. Tenants who reduce their commute are eligible for prizes based on their commuting habits. Lunch-and-learn sessions are held to educate tenants and staff and to communicate green initiatives and provide energy-savings tips. Compact fluorescent light bulbs are given to tenants on Earth Day. The Bottom Line: Water bills have decreased and utility consumption has either decreased or held steady over the past few years, which is significant for a building that has had three utility rate increases in two years.

Paseo Nuevo Albuquerque, N.M. Managed by Zia Rising Management and owned by Gordon L. Skarsgard Energy Strategies: Built on a former brownfields site less than a year ago, Paseo Nuevo is one of Albuquerque’s greenest buildings and is awaiting LEED EB Silver certification. Among the building’s green features is a geothermal well system, which is used to heat and cool water and replaces the use of natural gas. The geothermal heat pump system will allow the building to be at least 20-percent more energy efficient than the ASHRAE 90.1-2004 “baseline” building. Other energy-efficiency efforts include sensor-controlled and energyefficient lighting. Interior solar shades allow for views while blocking heat, and the building has a light-colored roof to reduce a “heat island” effect. Sustainable Strategies: The landscaping makes use of native plants that require minimum watering. The garage includes designated parking spaces for compact cars and motorcycles; in addition, bike storage and access to showers are offered to tenants who bicycle to work. Ten percent of building materials are recycled, and management is currently instituting a comprehensive recycling program. In March 2009, Albuquerque Mayor Martin Chávez chose Paseo Nuevo as the site to announce the city’s endorsement of BOMA International’s 7-Point Challenge to reduce energy consumption by 30 percent by 2012. The Bottom Line: This new building looks to be on track with similarly managed properties that have had energy savings of more than 30 percent.

Northpark Town Center • Atlanta, Ga. Managed by CB Richard Ellis and owned by AEW Capital Management Energy Strategies: The three interconnected Northpark Town Center buildings have each earned the ENERGY STAR label with scores of 79, 76 and 84, and all three buildings are candidates for LEED EBOM certification. Here are just a few of the energy-efficiency efforts: • Utilized daylight harvesting in parking garage—perimeter lights are connected to a photo cell; they turn off when not needed during the day. • Adjusted schedules for HVAC equipment as weather and seasons change. • Installed lighting occupancy sensors in restrooms and areas infrequently used. • Installed lighting control panels in buildings, so lights automatically turn off at 7:00pm (tenants can use an override switch if they are working late). • Convinced tenants to change out their incandescent bulbs inside their space (landlord will pay half of the cost). • Installed CO2 sensors to reduce outside air (and having to cool or heat non-essential outside air).

• Adjusted HVAC set points in vacant spaces for 68 degrees F heating and 78 degrees F cooling. • Maintained green roofs on Northpark 400 and 500 to reduce heat loads. Sustainable Strategies: Water conservation landscaping efforts include installation of rain sensors and perennial and drought-resistant native plants. Additionally, all restroom fixtures were replaced or retrofitted to low flow. Management instituted “Secure the Call” program, where tenants donate cell phones to a nonprofit organization that redistributes them to people in need for 911 use only. On Earth Day, management distributed compact fluorescents (CFLs) to tenants with a flyer that explained the energy benefits. Ride share and car/van pool options are offered to tenants through a partnership with the Perimeter Transportation Coalition. A newsletter is sent out to tenants announcing energy-savings efforts made in the building and offering tips for home. The Bottom Line: A savings of $175,000 annually is projected for recent lighting and restroom fixture upgrades. Other documented annual savings include 1.358 million kWh of energy, 1,040 tons of CO2 emissions, 7.5 million gallons of potable water and 360 tons of recycling diverted from landfills.

Continued on page 30

May/June 2009 BOMA 29

6 Smart Ways to Make Your Tenants and Clients Part of the Sustainable Solution 1. Make a Trade. Give away CFL bulbs to tenants

in exchange for a standard incandescent bulb. 2. Let Them Have Their Say. Organize energyefficiency and sustainability tenant councils. 3. No Nights & Weekends. Work with tenants to institute a “by request only” policy for supplying HVAC on nights and weekends.

4. Put It in Writing. Include sustainability tips in monthly newsletters.

5. Commuter Options. Post information on car

pools and mass transit in your building. 6. Embrace the Bike. Install bicycles racks in your garage for bike riders and allow bikers to use gym showers.

The Homer Building • Washington, D.C. Managed by Akridge and owned by ING Energy Strategies: Recognizing the ever-increasing cost of energy, Akridge has developed a strategic plan to conserve energy at The Homer Building and at other managed properties. Some of these best practices include: • Installing T5 lamps in place of T8s in common areas in the building, whenever possible. • Installing lighting occupancy sensors, where possible, in common areas, such as hallways, lobbies and restrooms. • Replacing high-wattage incandescent lights with low-watt LED lights. • Conducting night inspections to ensure lights are off and the building plant is running efficiently. • Routinely using infrared sensors to check penetrations in the building façade/walls/windows, which can cause heat loss in cold weather. • Managing EMS to adjust schedules according to exterior and interior temperature and staffing population (lease permitting). Utilizing an EMS optimal start/stop feature and communicating cost savings.

30 BOMA May/June 2009

• Raising temperature by one to two degrees F 30 minutes to an hour before the end of the day, which allows earlier shutdown and retention of heat in the building. • Managing sequence of operations to ensure all equipment is not running at the same time. • Benchmarking energy performance. Sustainable Strategies: In The Homer Building and throughout Akridge buildings, printed leave-behinds on recycled paper remind tenants to turn off lights and conserve water. The notes are often left with “green” gifts, like a reusable grocery bag. The Homer Building is the Akridge testing ground for the newest technologies in water reduction efforts, such as waterless urinals and hands-free faucets. Akridge established the “Green Team” to study all things green and implement the most effective solutions into its business. The team is constantly researching and testing new green products, compiling the latest data on tips for reducing the company’s carbon footprint and understanding new ways to promote these ideals. The Homer Building participates in Akridge’s annual “Green Week,” where the building’s green features are promoted and the Akridge Green Team offers clients information on energy efficiency. The Bottom Line: A minimal payback period is the result of applying lowand no-cost energy-efficiency solutions. Electricity conservation efforts led to the building being 440,000 kWh under budget in 2008.

Four Oaks Place Houston, Texas Owned by TIAA-CREF and managed by Transwestern Energy Strategies: All four buildings within the property have achieved ENERGY STAR ratings in excess of 90 and have received ENERGY STAR labels. Identifying low- and no-cost opportunities to reduce energy consumption is a primary focus at Four Oaks Place, which included replacing all incandescent light bulbs with compact fluorescent bulbs, and 35- to 40-watt T12 bulbs with highefficiency 25- and 28-watt T8s. This effort resulted in the reduction of energy consumption in excess of two million kWh per year. Care is also taken to properly operate and maintain the mechanical equipment and control the total operating hours to avoid wasteful operations. All four buildings benchmark energy performance through ENERGY STAR’s Portfolio Manager. Sustainable Strategies: Four Oaks Place participated in TIAA-CREF’s “Change the World, Start with ENERGY STAR” campaign, where compact fluorescent bulbs were distributed to all the tenants in the company’s commercial portfolio, its employees and used to completely retrofit all of its multifamily units. This effort helped raise awareness of how even simple actions can have large cumulative benefits to the environment and result in significant cost savings. TIAA-CREF obtained more than 250,000 pledges through the campaign, and was the top generator in EPA’s 2008 campaign. The Bottom Line: All no- and lowcost efforts are undertaken as part of the company’s standard operating procedures and offer very short payback periods. TIAA-CREF evaluates additional discretionary capital projects on the basis of whether they generate an accretive return to the investment, and pursue only those that do.

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How Green is Your Clean? Avoid Green Washing by Aligning Résumé with Reality By George R. Lohnes It is the nature of marketing (at least, good marketing) to be at the forefront of new products and services and to “push the envelope” in terms of performance and value. This is true of traditional products and services and equally true in the area of greening and sustainability. When companies’ claims get too far ahead of their competencies, when what they are saying is significantly different from what they are doing, when their operational capabilities are far outstripped by their value statements, then it creates what is traditionally referred to as a “credibility gap.” This is what happened with the sustainability movement— the industry began to change at a conceptual level but, for the most part, it was not dramatically changing its on-theground operations. In the sustainability arena, this credibility gap is quickly becoming known by the clever euphemism “green washing.” This is a natural consequence of the fact that, over the years, custodial operations had experienced evolutionary improvements, but had not fundamentally changed since the invention of the mop—okay, the invention of the vacuum cleaner. Operating procedures were often entrenched and the status quo was acceptable. As a result, many Business Service Contractors (BSCs) responded to the change in commercial properties’ role in sustainability by churning out some green marketing materials. This created a résumé-to-reality gap. Often, the next step was to start using sustainably certified chemicals and gradually replace worn out equipment with more up-to-date vacs, scrubbers, etc. While these upgrades were very important and incrementally helpful, often that was as far as BSCs took it. The fundamental changes required to transform the industry hadn’t taken root. The gap remained. About the same time, commercial building owners and managers took a mirrored stance. Many of the early adopters embraced and changed their go-to-market strategies from the ground up. Others, however, simply added sustainability checkoffs to their RFPs and, for many, that’s as far as they went. There was also a gap between their requirements and reality. The result was that virtually every BSC, even those with minimal sustainability practices, was able to legitimately respond to most standard RFP questions regarding green.

Sustainability Takes Hold

Enlightened BSCs and building owners/managers moved onto the next stage when they realized that sustainable practices are not only good for the environment but also cost effective and a positive differentiator in the market that can deliver

32 BOMA May/June 2009

hard dollar returns. Although the dream of increased margins for sustainable practices was quickly dashed, the ability to deliver truly sustainable practices, virtually cost neutral, was well within BSCs’ grasps. The value equation was fundamentally altered. These BSCs invested in the supervisory and staff training necessary to properly use the new cleaning solutions and equipment. They updated their cleaning and maintenance standard operating procedures (SOPs) to ensure that daily operations supported sustainability, and they researched and evaluated new technologies in order to stay ahead of the trends. They also became knowledgeable about the U.S. Green Building Council’s LEED® programs and other organizations at the forefront. In other words, they went beyond the letter of the law to internalize sustainability and fundamentally change their corporate cultures.

Finding the Real Players

But the résumé-to-reality problem still remains. Virtually every BSC can say, “Yes” to green check-offs in RFPs. How do building owners and managers cut through the marketing and the minimal operational changes to identify service suppliers that have truly made the commitment? How do they identify the companies that can become partners with them in their quest for sustainability, energy efficiency and healthy environments for their buildings? The answer lies in going beyond the RFP to truly understand the BSC’s commitment, investment and progress in adopting sustainability. There should be a script to follow—and there is. Even if you are not planning to pursue the LEED for Existing Buildings: Operations & Maintenance (LEED EBOM) certification, its guidelines and scorecards provide excellent outlines for vetting BSC proposals as it covers indoor environmental quality, including indoor air quality and green cleaning, energy, waste management and purchasing.

The following operational areas are worth exploring: Standard Operating Procedures—Examine the SOPs. Any bidder should be able to produce its SOPs immediately. The SOPs should be specific to each of the green operations covered in the RFP—not an older generic version that has been updated to include green references. They should specify acceptable procedures for each process and be clear and reasonable in approach. For instance, do the SOPs fully address waste han-

dling and disposal to ensure that materials are properly managed throughout the process? Does the BSC have separate procedures for cleaning and maintenance that address the differences between the operations? Training—Inquire about the training regimen. It should include initial green (and safety) procedure training sessions and periodic refresher

courses that are routinely scheduled and reported. Look at the infrastructure that supports training. It should take advantage of the BSC’s chemical and equipment suppliers’ training resources and also utilize in-house training staffs for company-specific training. Day-to-Day Management—Determine the commitment of the supervisory and management staffs. Examine their training. Are green metrics part of the management evaluation process? Inspections—Is there a well-defined, frequent inspection process that returns a representative view of the quality of operations? Green metrics must be part of the inspection process in order to measure both the current state and progress against goals. In addition to quality and sustainability outcomes (cleanliness, IAQ, equipment performance, etc.), inspections should include the full life-cycle of products used. This means that chemical and equipment storage, usage, maintenance and disposal should be included in periodic inspection reports. Reporting—Does the BSC have a reporting process that accurately presents results in a timely fashion? The reports for both the BSC’s management and the building owner/operator should be easily available, generally through a Web interface. Reports should also be customizable for different levels of management and detailed for operational managers while offering executive overviews. As well, they should be interactive, allowing reviewers to drill down through the data and actionable, highlighting metrics that are out of norm.

Purchasing—If the BSC is purchasing supplies and equipment for the building owner/manager, there should be a solid purchasing and distribution process that clearly defines acceptable products and puts controls in place to minimize off-catalog purchases. The process should be easy to use, responsive and cost effective. If the building owner/management company will be making the purchases, the BSC should be able to provide the list of sustainable supplies and equipment and be able to

work with the staff to facilitate purchasing.

These are the operational expectations. Outstanding BSCs will go beyond. Ask about: Safety—Although not technically connected to sustainability, safety is critical. It says a lot about the company’s work

practices, training and day-to-day management, and should be closely monitored and reported. Whether in an industrial or a commercial setting, safety performance can be used to compare and rate service providers. Innovation—Another cultural measure to look at is the company’s approach to innovation. Does it actively seek better ways to deliver green services through new work practices and technologies? Does its purchasing staff actively engage its vendors to recommend new technologies? Does it test and participate in the development of new technologies? Companies that look for new ways of delivering services will more quickly bring costeffective and efficient solutions to their customers. Commitment to Sustainability—Chances are, once the RFP has been vetted to the level recommended here, building owners/managers will have a pretty good feel for the service provider’s commitment. Leading companies are enthusiastic about their sustainability culture and interested in creating positive change. One tangible measure of commitment is LEED® AP (Accredited Professional) staff. A service provider’s LEED AP staff can certainly be helpful for LEED accreditation, and they can also assist customers that are not pursuing certification by identifying, recommending and implementing new procedures that advance sustainability.

The field of qualified BSCs that can offer sustainable services is certainly larger than it was a few years ago. But it is still not as large as marketing materials may suggest. Once again, is this green washing? The answer remains: It might be. The challenge and the responsibility for building owners and managers who seek green services is to get beyond the résumé to examine the infrastructure and commitment of service providers. That is the way to build a successful, long-term relationship that achieves sustainability.

About the Author: George R. Lohnes is vice president at UGL Unicco and the leader of the company’s UGL Unicco GreenClean® program. UGL Unicco hosts a green services Web site at www.greencleaning.com. To reach UGL Unicco, visit www.ugl-unicco.com, or e-mail info@ugl-unicco.com. May/June 2009 BOMA 33

BOMA International Conference & Every

The Office Building Show June 28 – 30, 2009 | Philadelphia, PA | www.bomaconvention.org

Great Connections, Smart Solutions. Every building. Every professional. One event. As a commercial real estate professional, you are on the front lines of today’s financial turbulence. For every building type, across the board, the challenges are immense. But there are opportunities in every economic climate. Get connected with the strategies and solutions specifically designed to help you survive this market cycle.  Enhancing asset value today  Doing a lot more with less  Leading your team to succeed

Money-Back Promise: If you are not 100% satisfied with your investment at the BOMA International Conference, write to us within two weeks after the conference and we will refund your registration fee.

Connect with industry leaders. This is your chance to hear how the brightest minds in our industry are grappling with, and solving, the major challenges facing all of us, in every building. From the industry leaders who are finding the marketplace opportunities to specialists leading sessions on core issues, you’ll get the complete story.

34 BOMA May/June 2009

Connect with real-world solutions. Operational excellence is more important today than it has been in years. The solutions providers at The Office Building Show will show you how to reduce operating costs, identify cost-saving energy-efficient solutions and enhance property value. Build cooperative relationships with the best providers in the industry.

Connect with a new network. When times are tough, networking and sharing ideas with industry peers is more critical than ever. If two heads are better than one when it comes to solving problems, just imagine what a few thousand can accomplish.

Connect with BOMA in Philadelphia. Philadelphia is a world-class city, with an amazing variety of attractions for you, your team and your family. Choose from cultural, historical and architectural gems. And choose the way you’d like to get here, because Philadelphia is an easy and affordable trip by car, by train or by air. The choice, and the city, is all yours.

Get the tools you need to communicate the value of attending at www.bomaconvention.org/approval

NEW! Five Value-Driven Education Tracks Now more than ever, you need the right strategies and solutions to help you achieve operational excellence and sustain your business through today’s challenging environment. This year’s program delivers both education and support from a network that is confronting and overcoming challenges in their buildings every day. Each education session is led by a thought leader – subject matter experts and industry practitioners who will share best practices and guide the discussion.

Maximizing Asset Value

Building a Sustainable Bottom Line (sponsored by Schindler Elevator Corporation)

Leading Effectively in Challenging Times

Going Lean: Managing with Less

Optimizing Building Operations: Tools for Building Engineers

Earn Education Credits. All programs qualify for RPA, FMA, SMA, SMT, CPM, ARM and SIOR renewal and CPD credits. Some programs qualify for continuing education credits required by many U.S. states and Canada for the renewal of real estate licenses.

Bring your Building Engineer for FREE! Once you register for the full conference, you may register your building engineer for a free full conference registration. Go to www.bomaconvention org for details.

Sunday General Session: Sponsored by Yardi/SiteStuff

Searching for Value in All the Right Places This Town Hall discussion takes an in-depth look at how industry luminaries are turning the global credit crisis into marketplace opportunities. Moderated by Andrew Florance, President and CEO of CoStar Group, Inc., the leading provider of information services to commercial real estate professionals in the United States and the United Kingdom, the panelists will reveal their strategies for enhancing asset value, finding the opportunities and leading their companies through these volatile times. Moderator: Andrew Florance President & CEO CoStar Group, Inc. Panelists: John E. (Chip) Akridge, III Chairman Akridge Washington, DC

Perry Schonfeld Principal LBA Realty, LLC Irvine, CA

William P. Hankowsky Chairman, President & CEO Liberty Property Trust Malvern, PA

T. Patrick Duncan Chairman & CEO USAA Real Estate Company San Antonio, TX

Monday General Session Sponsored by ThyssenKrupp Elevator Fareed Zakaria on How Global Economic Trends Affect Commercial Real Estate Fareed Zakaria, editor of Newsweek International, columnist and CNN host, will deliver an important message to the commercial real estate industry by sharing insights on the politics and culture of the global economy, global threats and U.S. foreign policy, and the solution to the energy problem. May/June 2009 BOMA 35

Show Preview

BOMA International Conference & Every

The Office Building Show June 28 – 30, 2009 | Philadelphia Convention Center

36 BOMA May/June 2009

Exhibitors at The Office Building Show 2009 as of April 17, 2009

Exhibiting As

Booth Number

1-800-GOT-JUNK?.................................. 1346 2-D As-Built Floor Plans.............................. 129 360Facility............................................. 1026

Able Services............................................ 820 ABM Family of Services.............................. 604 Acuity Brands Lighting (Supporting Partner).....742 Adura Technologies...................................1037 Advanced Energy Dynamics.........................1035 AlliedBarton Security Services (Cornerstone Partner)............................ 304 Ambius................................................... 545 AMCAT Global Inc................................... 1020 American Anchor.......................................... 111 American Building Calculations.....................339 American Leak Detection, Inc..................... 1240 American Restoration Inc/ARI CAT............... 908 Angus Systems Group................................. 1143 ArchiDATA Inc.......................................... 540 Arkema Inc.............................................. 938 ARMM Associates, Inc...............................1339 Ashland Hercules Water Technologies............1334 ASHRAE.................................................. 934 Atlas Sales & Rentals, Inc.............................. 101 August Mack Environmental, Inc...................1326 Avian Flyaway, Inc.......................................633

Bartlett Tree Experts...................................538 BELFOR USA Group, Inc............................. 123 Betco Corporation.................................... 904 The Blue Book...........................................637 BMS Catastrophe....................................... 619 Bobrick Washroom Equipment, Inc................ 1013 BOMA Greater Los Angeles........................ 439 BOMA International...................................432 BOMI International................................... 444 Braun Construction Services........................ 1104 Bravo! Building Services, Inc........................ 844 Brickman................................................. 628 Building Engines, Inc.................................. 1124

Exhibitors located in the Green Pavilion Advertisers in this issue of The BOMA Magazine are noted in red

Exhibiting As

Booth Number

Building Operating Management.................. 440 Buildings magazine.....................................332

C.H. Briggs.............................................. 950 Cab Solutions............................................910 Capital Asset Protection Inc........................ 544 Cardiac Science Corporation........................733 Carl Walker, Inc........................................ 1125 Carlisle SynTec Incorporated........................1231 The Carpet & Rug Institute..........................1233 Cascade Water Services............................... 915 Cascades Tissue Group...............................1345 Cemtrex, Inc.............................................228 CertainTeed Corporation.............................325 Charles H. MacDonald Electric Inc................ 841 Chem-Aqua, Inc........................................ 932 Cintas Corporation.....................................326 Clean and Polish, Inc................................ 1209 COIT Cleaning and Restoration Services........1322 Cooper Pest Solutions................................ 943 Core 7 US, Inc..........................................737 Cotton..................................................... 641 County Action Restoration.......................... 442 CPFilms Inc............................................. 638 Crawford Contractor Connection..................752 Creative Flooring Concepts, Inc.................... 105 Critical Power Exchange............................ 1045 CSI International, Inc.................................. 1119 CuraFlo.................................................... 719 Custom Metal Restoration, Inc.................... 945 Cypress Envirosystems............................... 1046

Davey/The Care of Trees............................. 107 Day & Zimmermann.................................. 1002 DCS Global Enterprise USA.........................1331 DK Haney Roofing.................................... 849 Dome-Tech, Inc......................................... 710 Door Guard Inc.........................................227

E3 Designs...............................................522 Eastern Diversified Services, Inc....................743

Exhibiting As

Booth Number

Eklund’s Inc.............................................. 931 Elemco Building Controls...........................1235 Elite Roofing & Maintenance, Inc................. 1214 Elliott-Lewis Corp..................................... 936 EMCOR Services........................................313 EMLIN GROUP.........................................543 E-Mon Green Pavillion Exhibitor..................1242 Encelium Technologies............................... 1140 Enecon....................................................233 Energy Smart Industry LLC.......................... 1150 EnerNOC, Inc......................................... 1340 EVAC+CHAIR North America, LLC.............. 520 Exelon Energy..........................................1325

Federal APD, Inc...................................... 1204 Finfrock D-M-C....................................... 1025 First Responder Educational Services..............437 Flexible Lifeline Systems, Inc........................ 1101 Fortress International Group Inc................... 246 Fujitec America, Inc................................... 620

G4S Wackenhut........................................ 808 Georgia-Pacific Professional....................... 1032 GOJO Industries, Inc................................ 1244 Granite Industries....................................... 816 Green Building Initiative............................ 1049 Guardsmark, LLC.......................................832

Harris Lighting.......................................... 1156 Healthy Buildings International, Inc............... 542 Hillman Group, L.L.C................................. 721 Holiday Image........................................... 214 Hubbell Building Automation.......................1225 Huguenot Laboratories.............................. 1007

Ingersoll Rand Security Technologies.............1033 INNERFACE Architectural Signage, Inc.......... 1136 Institute of Real Estate Management.............. 814 Continued on page 38

May/June 2009 BOMA 37

Show Preview Exhibiting As

Booth Number

International Code Council..........................739 International Window Cleaning Association...... 1115 INTERSTATE............................................ 102 ISP Painting, Inc........................................ 644 ISS Facility Services Inc. (Leadership Circle Partner)...................... 312 ISSA.......................................................1207

Jenkintown Building Services Inc................... 850 JohnsonDiversey Inc...................................1226

Exhibiting As

Booth Number

Kimberly-Clark Professional* (Cornerstone Partner)............................ 504 Kings III of America, Inc. N.A........................727 KMC Controls.......................................... 645 KONE Inc............................................... 426 KQ Services, Inc...................................... 1320 Kutol Products Company, Inc....................... 842

Exhibitors located in the Green Pavilion Advertisers in this issue of The BOMA Magazine are noted in red

BOMA Ads09 1/28/09 10:28 AM Page 1

Exhibiting As

Booth Number

Landscape Concepts Management, Inc..........1338 Land-Tech Enterprises................................ 646 Lasertech Floorplans................................... 631 Lipinski Outdoor Services............................ 132

M Schnoll & Sons, Inc................................. 113 MACH Energy......................................... 1256 Maintenance Partner................................... 216 Matting By Design..................................... 926 Melrose................................................... 441 Mobile-Shop Company, LLC........................ 913 The Mohawk Group....................................537 MRSA Architects & Planners.........................933 Munters Corporation................................. 944

Nalco Company (Supporting Partner).............1132 National Electrical Manufacturers Assoc. (NEMA)................................... 1341 National Water Services, Inc........................ 1041 Nationwide Consulting Co.......................... 1021 Nelbud Services Group, Inc.........................1327 Next Parking, LLC...................................... 541 Nu Flow America..................................... 1040

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38 BOMA May/June 2009

OAKLEAF............................................... 1107 Officescape.............................................1343 On Target Maintenance.............................1009 Optimum Energy.......................................1335 Orkin Commercial Services (Supporting Partner)...............................235 Otis Elevator............................................ 704

Pace Compumetrics, Inc............................. 750 Palmer Pads............................................. 1108 The Pavement Network Green Pavillion Exhibitor....................... 1044 Peak Fall Protection................................... 1014 Pepco Energy Services................................ 1103 PPG Industries, Inc.................................... 925 Predictive Service, LLC.............................. 640 Pro-Bel Enterprises Limited......................... 1001 Protective Glazing Council International........ 952

Q4 Energy Solutions................................. 1043 Que Centre.............................................. 103

R&K Engineering........................................438 RealWinWin.............................................. 1113 Reuter Hanney Inc...................................... 212 Rustoleum (Zinsser).................................. 643 Rytec Corporation..................................... 220 Continued on page 40

Show Preview Exhibiting As

Booth Number

S-5!....................................................... 1008 SageWater............................................... 949 SaniGLAZE International.............................. 119 SCA Tissue............................................. 1050 Schindler Elevator Corporation..................... 414 Schneider Electric, PowerLogic..................... 914 Sealant, Waterproofing & Restoration Institute.. 240 SealMaster...............................................745 Securitas Security Services USA..................... 612 Sentry Switch.......................................... 1203

Exhibiting As

Booth Number

ServiceMaster Clean................................... 714 Servidyne................................................. 809 Servpro Industries, Inc................................1027 Siemens Building Technologies, Inc. (Leadership Circle Partner)..................... 420 Sika Sarnafil, A Division of Sika Corporation.....1155 SimplexGrinnell.........................................725 SKYLINE Software......................................731 Smiths Detection....................................... 108 Solutionz Conferencing, Inc........................1236 Spartan Chemical Company, Inc Green Pavillion Exhibitor.......................... 1141

Exhibiting As

Booth Number

SSC Service Solutions................................ 239 Staples....................................................1330 Stuart Dean Co., Inc.................................. 625

Target Building Construction........................1333 Tate Access Floors, Inc................................338 Technical Concepts....................................532 Tecta America Corp................................... 1019 Thermal Moisture Imaging, LLC................... 1016 Thinkage Ltd............................................ 1109 Thomson Reuters (ONESOURCE Property Tax)...................245 ThyssenKrupp Elevator (Cornerstone Partner). 204 TNR Industrial Doors................................. 939 Total Asphalt, Inc.......................................937 TRANE (Cornerstone Partner)..................... 1031 Tremco Incorporated................................ 1250 Triacta..................................................... 1139 Two Men and A Truck International............... 226

U.S. EPA ENERGY STAR®......................... 1039 U.S. General Services Administration............ 626 U.S. Green Building Council Green Pavilion Exhibitor.........................1232 U.S. LAWNS............................................ 826 UGL Unicco (Leadership Circle Partner)......... 514 United States Roofing Corp.........................1127 Universal Services of America........................ 120 Unlimited Restoration, Inc...........................345

Valcourt Building Services........................... 940 ValleyCrest Companies, Inc. (Leadership Circle Partner)..................... 920 Varsity Contractors, Inc.............................. 1216 VideoComm Technologies...........................838 Videx, Inc................................................. 231

Walter P. Moore......................................... 341 Westcoast Innovative Pro-Pads....................... 311 Western Construction Group........................342 Western Pest Services................................. 927 Whelan Security Co..................................... 114 William F. Kempf & Son Inc.........................1328 Wiss Janney Elstner Associates, Inc................ 632 Workspeed............................................... 526 Worldwide Parking Solutions........................ 1210

X, Y, Z

xpedx......................................................732 Yardi Systems, Inc...................................... 802 ZOLL Medical Corporation..........................109

Exhibitors located in the Green Pavilion Advertisers in this issue of The BOMA Magazine are noted in red

40 BOMA May/June 2009

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BENCHMARKING

BOMA • Kingsley REPORT

BOMA Kingsley REPORT Practical Industry Intelligence for Commercial Real Estate BENCHMARKING SPRING 2009

Raising the Bar

An Editorial Message from BOMA and Kingsley Associates A “benchmark,” as defined by the Merriam-Webster dictionary, is “something that serves as a standard by which others may be measured or judged.” A very straightforward concept, it would seem. But in its application, particularly within the real estate industry, benchmarking has come to mean many things to many people. For investors and owners, benchmarking is a valuable tool for assessing new markets and scouting properties; it can also be used to measure asset performance and customer satisfaction. To property managers, benchmarks are utilized to identify inefficiencies, refine operations and substantiate value to ownership. And for corporate real estate professionals, benchmarking can aid in the optimization of space use and workplace efficiency; it can also drive the development of best practices. To shed some light on this important subject, BOMA and Kingsley Associates spoke with a broad cross-section of real estate leaders in various roles. While each has a unique perspective on how and why to benchmark, all were aligned on the significant value of this process. Put simply by Brenna Walraven, managing director, national property management of USAA Realty Company: “The key point is that you can’t manage what you don’t measure. It’s a fundamental business acumen, and real estate is no different.” In this edition of the BOMA•Kingsley REPORT, we will examine the topic of benchmarking in detail, sharing insights and success stories from both commercial and

corporate real estate professionals. Additionally, we will reveal some of the many approaches real estate firms are using to collect key benchmarking data—among them collecting internal data, obtaining information from service providers and using objective third-party tools such as BOMA’s Experience Exchange Report (EER)®*. We will also look at some of the most valuable metrics being benchmarked today, and discover how analyzing these key indicators has helped many real estate organizations achieve their strategic goals. “Improving Performance, Measure by Measure” reveals how corporate real estate professionals use benchmarks to uncover anomalies, refine operations, develop best practices and position for success. “How Does Your Team Stack Up?” explores the diverse uses of benchmarking among property owners and managers and uncovers some successful methods for attaining and utilizing comparative data. “It Takes a Village: How Vendors Can Help You Achieve Optimal Performance” chronicles how two vendor companies have taken a proactive and collaborative approach to benchmarking, and how doing so has helped their clients improve consistency and performance.

*Editor’s note: BOMA International and Kingsley Associates have recently announced a partnership to conduct the EER starting in 2009. For more information, visit www.BOMAEER.com.

27 May/June 2009 BOMA 43

BOMA • Kingsley REPORT

BENCHMARKING

Improving Performance, Measure by Measure By Laura Horsley, Director of Communications, BOMA International Across commercial real estate and corporate portfolios, many swear by the familiar adage, “You can’t manage what you don’t measure.” The most successful companies take this maxim a step further to mean, “You can’t improve what you don’t measure.” Benchmarking building performance has numerous benefits—developing budgets, identifying trends, flagging anomalies, gauging marketplace value, and the list goes on. But perhaps the most gratifying result of benchmarking is the prospect of continuous improvement.

Finding the Glitch This quest for constant improvement often begins with one small variance. A company may have the most sophisticated building automation system in the industry, but if it’s not being monitored properly, the smallest glitch can be extremely costly. Randall Knox, senior director of global workplace solutions with Adobe Systems, Inc., keeps an eye out for these anomalies when reviewing Adobe’s benchmarking data. In his words: “Benchmarking helps you stay abreast of trends because you [can see] anomalies when you measure yourself against peers. Then you can start digging into why these things are occurring.” Knox specifically recalls one instance that occurred shortly after the company installed real-time electrical meters in one of its buildings. “We were looking for a measurement of electricity use and we saw all kinds of spikes occurring in our usage, which were driving daily electrical rates. This immediately prompted us to look into what was causing the spikes, and we found several programming issues with our building system that we were able to correct.” Adobe enlists the support of its property management provider, Cushman & Wakefield, in its benchmarking efforts.

44 BOMA May/June 2009

George Denise, global account manager for client services with Cushman & Wakefield, oversees the management of the Adobe properties and finds that, while tracking anomalies through benchmarking doesn’t always provide the perfect “apples to apples” comparison, it is a great way to pinpoint inefficiencies. “Anomalies don’t necessarily mean something is wrong, but they are a red flag that alerts you to drill down and research it further. In the process of doing that, you can gradually refine your operations and become more efficient.”

Establishing Best Practices For a corporation like Adobe, identifying and correcting building system anomalies can mean tremendous savings in operating expenses. And, beyond the cost savings, the process of investigating, analyzing and fixing glitches can also promote best practices. “Any time you find efficiencies, you try to leverage them within your properties,” explains Denise, “and we do that at Adobe.” The Adobe headquarters complex in San Jose, Calif., includes three towers— all LEED® Platinum certified—that often serve as the standards for excellence across the Adobe portfolio. The efficiencies identified at these buildings through benchmarking efforts are often applied to other properties, first in the San Francisco Bay area, and then across the Americas and overseas. This is a process that works in reverse as well, explains Denise, as the managers of buildings outside the San Jose headquarters are also identifying best practices and sending them back. “It’s a very collaborative effort with a lot of synergy,” he adds. In a difficult marketplace, savvy property managers use benchmarking

to identify best practices as a means to maximize value and stay competitive. Melissa Throop, vice president of client accounts with CB Richard Ellis (CBRE), identifies this as one of the main reasons to benchmark. “We benchmark to find best practices, and when we get the results, we spend a lot of time with the accounts that are reporting the lowest expenses or best ratios,” explains Throop. “We try to understand why they are the best and what they are doing differently. Those ideas are then shared with other accounts as best practices.” Using benchmarking data, CBRE works directly with clients to improve efficiencies and reduce costs. “If we are looking at occupancy expenses per work station, for instance, we are looking to see if there is an opportunity for our client to reduce expenses through workplace solutions, whether that be restacking in the current space, moving to a lower cost facility or utilizing some sort of alternative workplace solution,” says Throop. Whether identifying best practices or cost-cutting solutions, Throop finds the most effective benchmarking system to be one that is continuously updated to keep up with changing trends. “When we started benchmarking in 2003, looking at expenses per employee was the way to analyze space efficiency. Since that time, we have learned that we not only need to look at utilization and expenses per employee, but also per work station. The combination of the two gives a better picture of where a company is and what strategies it should implement.”

Setting the Tone Adobe benchmarks internally and externally, measuring against both itself and other properties in the market. The company looks closely at measures such as cost per square foot, per occupant and per work station, as well as square footage per person and work station. It also tracks electricity and water usage against other buildings of similar type in the region.

BENCHMARKING

BOMA • Kingsley REPORT

Working with a firm like Cushman & Wakefield that benchmarks across its much more extensive portfolio of properties provides a larger comparative data set with which to make comparisons. In fact, Cushman & Wakefield requires all of its properties to benchmark using ENERGY STAR® and, where possible, to participate in BOMA International’s Experience Exchange Report (EER)® survey. To create more specific comparisons across a variety of building traits, Cushman & Wakefield also breaks out its operating statement into two parts: normal operating costs (or “capturable costs”) and facilities costs. The company uses the same format as the EER, which allows for better comparisons. This is especially helpful when benchmarking Adobe buildings, some of which have data centers and software labs that typically use a lot of energy. “When we look at other Class A office buildings, most of them don’t have data centers or server rooms of the size we have,” explains Knox, “but we have the ability to track exactly how much electricity those rooms are using, and we’re able to deduct that out of our building score.” Despite housing energy-hungry data centers in some of its buildings, Adobe has gained national attention for its energy performance, especially in its LEED Platinum headquarters towers. Knox touts benchmarking, particularly

through the ENERGY STAR Portfolio Manager benchmarking tool, as a big part of this success story. “A big step was benchmarking against ENERGY STAR because it put us well on the trail that resulted in the LEED Platinum certification,” remarks Knox. “There were 64 projects that we implemented over a five-year period. About 30 of those were implemented on our own and resulted

“That ENERGY STAR benchmark was a major motivator.” in a ROI of 108 percent, whereas the ENERGY STAR and LEED projects had a ROI of 148 percent. I would attribute that directly to a form of benchmarking.” Particularly on the energy front, benchmarking has served as a prime motivator for Adobe. When the company first benchmarked two of its headquarters towers through ENERGY STAR, one building earned a score of 76 and the other a score of 73. It takes a score of 75 to achieve the ENERGY STAR label, which drove Adobe to ensure that both buildings rated at 75 or higher. “That ENERGY STAR benchmark was a major motivator,” recalls Denise, “and we continued and eventually got our scores up into the high 80s and low 90s, which is

pretty impressive for buildings with data centers and software labs.” One reason Adobe has always emphasized internal benchmarking is because other buildings in the market simply were not keeping pace on energy efficiency. The core competition was mostly internal, with one Adobe LEED Platinum building jockeying with another to raise the bar. In recent years, though, the world of green building has opened up significantly and competition abounds. “Three years ago, there was one building in the Silicon Valley that was certified as a green building and there were six working on certification, three of which were Adobe buildings,” says Denise. “Today, there are 18 green-certified buildings in the Valley and there are 118 that are registered and working on certification.” The groundwork that Adobe helped to lay has set a tone and expectation for excellence in energy efficiency, with benchmarking being a critical tool for measuring improvement. Knox has a positive view of the recent competition in the marketplace. “We issued a challenge and we’re happy to see people stepping up to meet it.” This statement goes back to what is perhaps the real reason that we all benchmark: to amass the most reliable data to measure and then improve building performance.

May/June 2009 BOMA 45

BOMA • Kingsley REPORT

BENCHMARKING

How Does Your Team Stack Up? By Elysse Bell, Project Analyst, Kingsley Associates, and Daniel Mazmanian, Senior Project Manager, Kingsley Associates In today’s real estate environment, conditions are increasingly difficult, with everyone looking for a competitive foothold. But how can your team find an advantage if you have no comparative point? Increasingly, top real estate firms are utilizing benchmarks to see how they stack up vs. internal standards and other teams. They are then using this information to refine their operations and develop best practices, on both small and large scales. It is shaping up to be a difficult season for real estate, and those teams with a solid knowledge of both themselves and the competition are the ones best positioned to succeed.

Every Inch Counts— The Value of Benchmarking As budgets and income projections continue to tighten, “benchmarking is more important today than it’s ever been,” remarks Scott Kuklish, executive vice president and director, medical real estate services at PM Realty Group (PMRG), a Houston-based owner and manager. Kuklish is responsible for managing PMRG’s joint venture with Montecito Medical Management, a venture specifically centered on the acquisition, operational management and leasing of medical real estate. Kuklish is also a true benchmarking veteran, and believes that benchmarks have provided significant value to the real estate industry for the past 25-plus years through market ups and downs. He and his team at PMRG are committed to this process, and their experience shows in their ability to utilize benchmarks for multiple purposes—among them, market scouting, underwriting and substantiating value to investors. When exploring new investment opportunities in the medical office arena, PMRG uses benchmarks to help get a sense of the size and scope of a market, as well as to determine the financial viability of market entry.

46 BOMA May/June 2009

Kuklish explains: “We look at the volume of facilities in the market and who the players are. Once we’ve determined which healthcare providers are in the market, we use our own research to determine synergies—which physician practices are in need vs. which are in excess?” Kuklish continues, “Oftentimes, benchmarking helps us determine which markets we go into. For example, if we go into a suburban or downtown building, are the financials of that market going to substantiate the investment? Or, are there nuances with that community that we should know about? Suffice it to say, it is invaluable to have benchmarking data we can rely on.” In the underwriting process, Kuklish and his team use benchmarks at several stages, primarily to validate assumptions regarding base rents and expenses. “We use it as a tool in the beginning of the underwriting process,” notes Kuklish, adding, “we also use it as a qualifier to validate the information that the underwriters have come up with.” Specific to

“Benchmarking helps us determine which markets we go into.” the medical office sector, the value of benchmarking has increased as the market continues to shift from predominately locally owned businesses to more institutional entities. With that market movement has come a new accountability to investors, where “benchmarks can be an invaluable tool.” Kuklish describes it as follows: “You’re constantly having to validate what you’re doing and you’ve got to be able to provide an explanation to the doctors, healthcare companies and ownership that what you’re doing adds value. That’s where it’s all at—it’s all about value and being able to substantiate it.”

Brenna Walraven is managing director, national property management at USAA Real Estate Company (USAA), a San Antonio-based investment manager that has demonstrated a similar commitment to benchmarking, albeit for slightly different purposes. For USAA, benchmarking is used first and foremost to evaluate property-level performance throughout its portfolio. “We are constantly looking to measure performance in objective, consistent ways,” notes Walraven. “We then can take steps to continually improve performance.” In fact, USAA has taken the benchmarking process one step further, creating its own color-coded matrices using the information collected. This way, the firm can quickly track how its properties measure up to competitive products. Walraven notes the comparisons are first made to a hand-selected group of properties that are deemed to directly compete in a given market, while a secondary comparison is made to BOMA data. She explains the system as follows: “If [a property is] coded green, that means its total recoverable expenses are within the range or below the range of recoverable expenses in the competitive set. If a property is [coded] yellow, it means that the property’s total recoverable expenses are less than 10 percent higher than the comparable range, but still lower than BOMA. And [a code of] red is used when a property’s total recoverable expenses are more than 10 percent higher than the range of comparables. In that case, we’ve got an issue that we have to focus on.” Beyond measuring property performance at a tactical level, Walraven and her team at USAA also use benchmarks to identify macro-level trends and help guide company-wide improvement initiatives. For instance, USAA conducts annual tenant surveys to monitor service delivery and evaluate year-to-year trends in customer satisfaction. Additionally, the firm tracks retention rates, lease volume and total number of transactions

BENCHMARKING

The Assist— Where to Find Benchmarking Data It may seem like a daunting task to identify, collect and analyze all of this comparative data, but there are a

Now, we’re talking about hundreds of buildings and multiple markets. So, the information is much more credible than it used to be, and I’m very pleased to see that happen.”

The Stats— What to Measure Operating expenses, along with occupancy, income and base rents, are some of the core measures that Kuklish and Walraven are frequently monitoring. When analyzing different market opportunities, Kuklish and PMRG also utilize BOMA’s EER to evaluate cleaning and security metrics, all the way down to parking ratios. Additionally, in its role as a third-party manager, PMRG keeps close tabs on how agency-managed buildings are performing vs. ownermanaged buildings from an efficiency standpoint. Kuklish describes this as increasingly important given the continued upward pressure on expenses. Another useful application of benchmarking is in evaluating newly implemented or trial programs. USAA gauges the success of its “green” programs through comparative analysis, which Walraven describes as follows: “We look for objective affirmation that we are being competitive with our ‘green’ and energy-efficiency initiatives. It helps us to see that there is value in doing that and that our ‘green’ efforts are actually helping to control our expenses.” Despite their different uses of and applications for benchmarking, PMRG and USAA have each benefited immensely from this process. In this difficult season for real estate, these teams are working intently to understand themselves and their competitors better, which will ultimately result in a more focused game plan moving forward.

May/June 2009 BOMA 47

BOMA • Kingsley REPORT

in terms of square footage. The ultimate value of all these benchmarking activities is enhanced when the information is distributed throughout the company. Walraven explains: “First, we give it to all senior executives, and then to all asset managers and property managers so they can see how they rank. I know they [asset managers and property managers] use it to look at what they need to focus on.” USAA also ties this data into its performance reviews. As Walraven mentions, “Certain benchmarks can be great resources for goal setting and driving manager performance.”

number of available, reliable resources for use. And what better place to start than your home court? In describing her typical benchmarking process, Walraven explains, “First, I’m looking to see how we perform year-over-year—how we compare on a property-to-property level and then on the whole, relative to the prior year. Do we have a one-percent increase in costs, or are we flat? That gives a good idea of what’s going on.” Portfolio and property comparisons year-to-year enable USAA to identify trends and measure the success of new programs while also highlighting any problem areas—or areas that have experienced abnormal fluctuations. Though important to engage in self measurement, limiting benchmarks to your own data can sometimes cause you to overlook industry-wide trends— trends that might help to explain any significant changes in a given measurement area. That’s where organizations such as BOMA can be a valuable resource. For example, BOMA’s Experience Exchange Report (EER)® provides building managers with a wealth of operations data from rival properties in their markets. By maintaining strict confidentiality around the data, the EER allows access to a “competitive set” of data that would not otherwise be available—at least, not legally. Kuklish and PMRG have found this information extremely valuable in their efforts to appraise costs. “The numbers associated with the cost of managing and leasing healthcare properties, and being able to put your finger on where the costs are, both regionally and nationally, have been very helpful,” notes Kuklish. “I can traverse through the information very quickly without having to spend time calling other people.” Kuklish has observed a dramatic increase in the data related to healthcare real estate as this industry sector has gained in popularity. He notes, “I can remember when we used to look years ago and a data set would contain 15 to 20 buildings.

BOMA • Kingsley REPORT

BENCHMARKING

BOMA International

It Takes a Village:

How Vendors Can Help You Achieve Optimal Performance By Lindsay Tiffany, Manager of Media Relations, BOMA International Property services vendors can play a critical role in helping owners and managers achieve excellence in building performance. Whether they provide janitorial services, HVAC products, elevator services or security, vendors are an integral part of the benchmarking process— providing building managers with critical data to help them assess costs, identify trends and ultimately do more with less. Many vendor companies have developed sophisticated methodologies for assisting building owners and managers in benchmarking performance. Two of the industry’s building products suppliers, UGL Unicco and Trane Commercial Systems, have adopted an especially collaborative approach with their clients. BKR spoke with Thomas Gunn, vice president of facility management solutions at UGL Unicco, and Scott Lenger, director of commercial and industrial sales at Trane Commercial Systems, about this very subject. In the process, we learned how these leading companies are leveraging their offerings to help their clients optimize performance: Lay the foundation. Establishing a baseline by which to measure performance is critical to build a successful relationship. “Particularly when large system components such as chillers are involved, we often verify the performance with the customer or their representative,” says Lenger. “We also do a similar test after installation to ensure that the product functions as intended. This initial data is critical in evaluating performance.” It’s all in the details. Providing clients with detailed performance data has become increasingly critical in today’s environment. Gunn says Unicco is asked on a regular basis to provide specific metrics to its clients, and, in some cases, clients will monitor their ability to deliver this data. “Clients today are looking to make decisions on hard data,” adds Gunn. “The more detailed the information you can provide a property manager, the better.” One size does not fit all. Recognizing that all clients are different, and adapting to their individual needs, is also paramount. “In a building, you don’t necessarily know how the space is being used—where people are scattered and what their movements might be,” Lenger notes, emphasizing the need for a flexible approach. “So, we gauge these patterns, and allow our systems to adjust temperature settings and indoor air quality accordingly.” Value, value, value. It’s all about providing value, in everything you do. Unicco finds that clients are looking for bundled solutions to minimize touch points and leverage provider networks. “Clients are looking beyond the basic contracted service model and are looking to determine how the company adds value to a client’s operations,” says Gunn. “They are always looking for a balance between cost and quality in an effort to achieve the maximum value.”

48 BOMA May/June 2009

Founded in 1907, the Building Owners and Managers Association (BOMA) International is an international federation of more than 100 local associations and affiliated organizations. The 18,000-plus members of BOMA International own or manage more than nine billion square feet of commercial properties in North America and abroad. BOMA’s mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research, standards and information. On the Web at www.boma.org. BOMA International—leaders in commercial real estate.

Kingsley Associates The most successful firms in real estate rely on Kingsley Associates for cutting-edge business intelligence solutions. With a depth and breadth of insight unmatched in the industry, we bring thought leadership and passionate client service to every engagement. Let us partner with you to improve the performance of your assets and organization. The Kingsley IndexSM is the largest and most comprehensive performancebenchmarking database in the industry. Compiled from over 20 years of analyzing the performance of real estate leaders, the proprietary Index represents the standard for measuring tenant, resident, employee and client satisfaction, as well as broker relations and operational effectiveness. With over 20 years experience delivering strategic solutions to real estate clients, Kingsley Associates is uniquely positioned to help you leverage your customer retention initiatives. Kingsley Associates—business intelligence for the real estate industry.

Headquarters: 1101 15th St., N.W., Suite 800 Washington, DC 20005 (202) 408-2662 www.boma.org

Headquarters: 182 Second Street San Francisco, CA 94105 (415) 777-1140 www.kingsleyassociates.com

Key Contacts: Lorie Damon Vice President of Education and Research (202) 326-6351 ldamon@boma.org Laura Horsley Director of Communications (202) 326-6315 lhorsley@boma.org Lindsay Tiffany Manager of Media Relations (202) 326-6365 ltiffany@boma.org

Key Contacts: Jim Woidat Principal - San Francisco Office (415) 777-1140 jwoidat@kingsleyassociates.com John Falco Principal - Atlanta Office (770) 908-1220 jfalco@kingsleyassociates.com Phil Mobley Vice President (770) 908-1220 pmobley@kingsleyassociates.com

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SECTOR WATCH

Rehab Challenges

Healthcare Real Estate: Not Immune to Capital Crunch By Gordon Soderlund

Given the attractive economics of medical office buildings and ambulatory surgery centers (ASCs), some industry experts expect that MOB development will pick up relatively quickly once the capital markets return to normalcy.

50 BOMA May/June 2009

The crisis in the credit markets has affected every sector of the economy, including healthcare. In particular, the tightening of the bond markets has curtailed many hospitals’ capital projects, especially construction of new facilities or additions to existing ones. On many hospital campuses, even construction projects that had started have now halted, while the hospital systems await a thaw of the capital markets. For medical office developers, the crisis in the capital markets has also had an impact, as hospitals have delayed construction on these types of facilities as well. Because medical office buildings (MOBs) are increasingly used to deliver less expensive procedures and care than the traditional hospital setting, medical office development has boomed in the last decade. With substantially lower construction and operating costs than acute-care hospitals, medical office buildings have helped to address a number of crucial healthcare needs. Extending delivery of care to patients across a larger and more geographically diverse area via a hub-and-spoke facility strategy allows hospitals to reach the broader market at significantly lower costs. Given the attractive economics of medical office buildings and ambulatory surgery centers (ASCs), some industry experts expect that MOB development will pick up relatively quickly once the capital markets return to normalcy.

In the interim, existing MOBs may be candidates for rehabbing and adaptive reuse, but both options present their own challenges. Adapting existing MOBs (particularly older ones) for new uses may not be easy or cost-effective, in part because older buildings may not have the floor plates to accommodate innovations in medical technologies. Innovations in diagnostic imaging equipment (such as MRI, CAT and PET scanners, which are large, energy-demanding and sophisticated systems) may hamstring a renovation strategy because not every building can accommodate them. Their presence in MOBs continues to increase, however, providing benefit to patients who desire convenient access all in one location and to physicians who can generate referrals within the same building. Older MOBs also may not accommodate the designs of more sophisticated specialty healthcare practices, such as neurology and oncology. In addition to the challenges of accommodating the equipment needed for these types of physician practices, these facilities also have to be reworked to accommodate the unique patient flow demands of these specialties. Finally, many healthcare systems— thanks to government incentives—are foraying into electronic health records (EHRs). Electronic health records essentially store all patient records in a central database and allow physicians to access patient history and current treatments via laptop computers and PDAs, which accompany them into the exam room. Frequently lauded as tools for improving patient safety and treatments—because Continued on page 52

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SECTOR WATCH

Banking on Monetization

physicians will not have to rely on patients to share information about their current conditions or medical history— EHRs require technology infrastructure in order to work properly. Skeptics have already raised the issue of how patient records will comply with HIPAA (patient privacy legislation), and whether EHRs will, in fact, save time and money for physician practices. Accommodating the technology infrastructure requirements to support EHRs in older MOBs may not be feasible from either a design or a cost perspective. Despite these challenges, healthcare systems and MOB owners may nevertheless be forced to become ever more creative about rehabbing existing facilities, particularly if the capital markets continue to struggle. Further exacerbating the problem are flat or decreasing patient volumes, as consumers defer both elective and non-elective surgeries and other procedures due to job loss, high deductible insurance coverage or increasing COBRA premiums following layoffs. Industry experts also expect an increase in the numbers of uninsured and underinsured, which will create further pressure on hospital systems’ financial performance.

52 BOMA May/June 2009

Beyond its impacts on development of new MOBs or rehabbing of existing ones, the credit crisis is also having an impact on MOB monetization activities. Here, too, it’s unclear precisely how farreaching the impact will be. In the past decade, many hospital systems have elected to monetize their MOB and other non-core assets in order to generate additional capital that can be deployed directly to provide healthcare services. Often, large portfolios were monetized. The constriction in the capital markets has certainly cooled monetization activity, as lenders have been unwilling to finance the large transactions that were common in the past. Despite the slowdown over the last six months, many in the industry expect that monetization activity will begin to rise. As hospital systems wrestle with their own financial fortunes, many may revisit monetization as an effective tool to improve their capital positions.

A Return to the Hospital? Other trends in healthcare may also have significant impact on the development and leasing of MOBs. Chief among them is the renaissance of hospitalemployed physicians. Hospital administrators note that many physicians currently in private practices continue to face significant economic pressures. Shrinking Medicare and Medicaid reimbursements have contributed to a steady decline in private-practice physicians’ earning power. For nearly 20 years, these reimbursements have not even kept pace with inflation, while physicians’ practice costs (such as malpractice insurance) have risen. These practice economics have created pressures on MOB rents. While practice acquisitions by

hospitals were in vogue 15 years ago, flaws in that strategy, such as improperly structured incentives post-acquisition, caused substantial financial failures leading to an unraveling of these acquisitions. That trend is now reversing in favor of the closed-physician model, whereby physicians are becoming hospital employees again. The deal structures are improved with appropriate incentives negotiated. Though physicians may earn less than they might have in private practice, there is greater security in a consistent flow of income; hospitals assume greater burdens of practice administration; and the hospitals gain built-in loyalty and patient volume. It’s unclear what impact the closedphysician models might have on MOB rents—though one could expect tougher negotiations during lease renewals, since hospitals have a stronger credit position than the physician practice tenant. The hospital could also exercise its right to purchase the facility if its combined tenancy gives it majority occupancy in the MOB. Ultimately, the most significant trends affecting healthcare and its real estate may be on the horizon. The Obama Administration has pledged to undertake healthcare reform. Though no formal plans have been issued to date, most healthcare experts expect the administration to move quickly with the outlines of a reform plan. But, until they do, both healthcare and real estate industry experts decline to speculate about what the implications of healthcare reform may be. Seasoned healthcare real estate experts, however, are watching carefully as the larger trends in healthcare often result in changes in real estate strategy, development and leasing.

About the Author: Gordon Soderlund is senior vice president, Strategic Relationships, The DASCO Companies, LLC, and co-chair of BOMA’s 2009 Medical Office Buildings and Healthcare Facilities Committee.

For more information on these and other trends in healthcare, attend BOMA’s Medical Office Buildings and Healthcare Facilities Conference, June 25-26, 2009, at the Marriott Philadelphia Downtown. Learn more about the conference andregister at www.boma.org/Train

ingAndEducation/MedicalOfficeBuildings

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Solar Solutions Sunshine + Tax Rebates = Smart Investment By Laura Horsley

While Solar power may not be the most cost-efficient solution for every building, more companies in hot, sunny climates are taking a second look at solar options, especially if their building has a high energy demand and is located in a state that offers healthy incentives for energyefficient equipment. For the IDEC U.S. headquarters building in Sunnyvale, Calif., a manufacturer of control and automation products, installing a solar electric system for its combination corporate office building and warehouse facility was a no-brainer.

54 BOMA May/June 2009

“Being in Silicon Valley, where it’s sunny something like 330 days a year, it just made a lot of sense for us,” says Lanny Schuberg, engineering and compliance manager with IDEC Corporation. “Plus, the cost of electricity isn’t getting any cheaper.” IDEC Corporation completed the installation of a 162-kilowatt (DC) solar electric system along with a new efficient warehouse lighting system as part of the company’s green mission, but the projected energy and costs savings certainly don’t hurt either. The combined savings from the solar electric system and the

lighting retrofit is expected to reduce IDEC electricity consumption from the local utility by approximately 25 percent, with a projection that the real savings will be closer to 35 percent because most of the energy provided by the solar panels is produced during summer afternoons when electricity rates are highest. In addition, IDEC is estimated to avoid 280,650 kWh per year of conventional electricity, which would result in reducing 505,170 pounds of CO2 emissions. Although the cost of the solar electric system was more than $1 million, according to Schuberg, the system should pay for itself within six years— not bad considering it has a 30-year life expectancy. “When you take into account the federal and state tax credits, the rebates from the utility (PG&E in this case) and the depreciation, 90 percent of the cost is already taken care of,” says Schuberg. California is a good state to do business in if you want to go solar as it offers generous incentives and rebates for buildings and companies that reduce energy consumption.

IDEC Corporation is headquartered in Osaka, Japan, and is ISO 14000 compliant. Similar energy upgrades have already been done in IDEC offices in Japan. Beyond the environmental, energy reduction and cost savings benefits of the new system, a big part of the incentive comes down to old-fashioned business smarts. “More and more customers want to do business with green buildings,” says Schuberg. “It’s brought us new business and other companies are looking to us because they like what they see.” Eight hundred eighty-eight (880) solar panels were installed on the IDEC building in November 2008.

Today’s Solar Panel The solar electric system at the IDEC building in Sunnyvale, Calif., consists of 880 panels made by Mitsubishi Electric and was designed and installed by REC Solar. Mitsubishi’s photovoltaic solar modules are engineered for extended use in environments with extreme temperatures and harsh weather conditions. Solar panels tend to be very durable and often come with warranties of up to 25 years. According to Jenean Smith, marketing communications manager with Mitsubishi Electric, the panels often outlive the warranty; the original solar cell created by Bell labs back in the 1950s is still working today. “The craftsmanship makes them great,” says Smith. “They are thinner and stronger today. You can drop a steel ball onto the glass, which has a high-pressure weighting and resists strong winds.” Solar panels are used across a wide variety of commercial buildings. They are most commonly found in buildings that use a lot of energy, such as manufacturing and production facilities, warehouses and data processing and storage facilities. The solar electric system in the IDEC building services both the corporate office and the warehouse facility.

May/June 2009 BOMA 55

Green Scene

Enhancing Portfolio Value through Carbon Reductions By Alyssa Quarforth In this struggling economy, it’s time to get back to the fundamentals of real estate—maintaining tenant satisfaction, controlling costs, creating value and remaining competitive. Along with these financial challenges, you’re likely facing pressure to reduce your climate impact. Fortunately, energy management will help you meet these economic and environmental challenges. Since 18 percent of U.S. carbon dioxide (CO2) emissions are associated with commercial buildings’ energy use, using less energy for building operations is the best way to reduce your carbon footprint. Nicholas Stolatis, director, Strategic Initiatives for TIAA-CREF Global Real Estate, explained his organization’s energy management priorities during a recent presentation. “As a financial services firm, our primary source of greenhouse gas emissions is our investment real estate,” said Stolatis. “The [energy reduction] goal that we’ve established will prevent approximately 37,000 tons of carbon dioxide.” That number is equivalent to taking more than 6,100 cars off the road for a year. In addition to reducing carbon emissions and

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enhancing your market position, focusing on energy efficiency will reduce tenants’ operating costs, making your space more competitive. By reducing energy consumption, “you can receive an immediate impact financially that benefits both the tenant and the value of the asset,” notes Mike Kent, managing director and head of Leasing and Property Management for RREEF. Further, many local and state governments now require energy benchmarking and public disclosure of building energy performance, and numerous regional, state and local greenhouse gas reduction programs are under way. The value of buildings that are “energy hogs” may be discounted in the future, so it’s necessary to better understand your carbon footprint now—start by examining energy use. Many commercial real estate professionals are already using EPA’s ENERGY STAR® Portfolio Manager, a free and confidential online tool, which allows you to track energy use and water consumption, as well as your portfolio’s greenhouse gas inventory. “As governments impose additional regulations addressing greenhouse gas emissions, having your actual numbers is going to become critical,” explained Stolatis.

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The source for carbon emissions data in Portfolio Manager is EPA’s Emissions & Generation Resource Integrated Database (eGRID), a comprehensive inventory of the emissions associated with electricity-generating power plants across the United States. Portfolio Manager uses the utility grid data for your zip code to calculate emissions associated with electricity consumption at your building. Buildings that track energy consumption in Portfolio Manager and demonstrate that their building is performing in the top 25 percent of buildings nationally are eligible to earn the ENERGY STAR label. These buildings are typically responsible for 35-percent less CO2 emissions than an average building. And case studies and research—such as RREEF’s September 2008 report “Globalization and Global Trends in Green Real Estate Investment”—show a link between the ENERGY STAR label and increased rents, property values and occupancy. Taking the steps to manage energy use today will position your organization for market leadership in an industry facing a challenging economy and increased pressure for environmental responsibility. Stay ahead of these drivers by taking an active role in understanding and reducing your portfolio’s climate impact.

About the Author: Alyssa Quarforth is the U.S. EPA ENERGY STAR Program manager for commercial properties. For more information on ENERGY STAR, visit www.energystar.gov.

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ENERGY STAR’s Portfolio Manager provides greenhouse gas emissions information for buildings and portfolios. This includes direct emissions (resulting from on-site fuel combustion); indirect emissions like electricity (produced by an external source but attributable to energy consumed on-site); and the total of both. Emissions of carbon dioxide, methane and nitrous oxide are included, and are represented as CO2 equivalents. Metrics can be compared for different time periods in order to measure improvements. Other recent Portfolio Manager improvements include: • An updated model to benchmark the energy performance of warehouse space. • A new feature to enable multi-family communities to track energy and water usage. • Additional technical updates to clarify terminology and calculations. Forthcoming updates will include a new model for computer data center benchmarking and additional reporting features and tools. For more information about Portfolio Manager, visit www. energystar.gov/benchmark.

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May/June 2009 BOMA 57

research corner

Not Your Father’s Benchmarking Tool—‘EER 2.0’ Coming This June By Noel Popwell

Resourcefully Green™ Water Treatment Is Smart Business In Action • Pursuing LEED® certification? • Interested in conserving energy? • Concerned about protecting the environment? • Interested in reducing utility costs?

Chem-Aqua provides water treatment solutions that protect valuable HVAC systems and minimize associated operating costs. We help customers preserve precious natural resources, improve employee health and comfort, and protect the environment by providing green solutions that deliver measurable water and energy savings. Ask how our HandiChem™ Solid Water Treatment System and other Chem-Aqua innovations can help meet LEED-EB: O&M and LEED-NC requirements. Contact Chem-Aqua today for a free evaluation of your system. David Rose: 800.527.9919 ext. 0120, drose@nch.com.

Today, most people get the information they need via the Web. It’s just cheaper, faster, more convenient and environmentally friendly to access information online. BOMA’s Experience Exchange Report (EER) is making the transition to the Web as well. This June, the office building income and expense reports, previously published in book and CD-Rom formats, will be available exclusively online. Thanks to a collaboration between BOMA International and well-known industry research firm Kingsley Associates, a brand new Web-based EER will change the way industry professionals obtain the latest market information. Property managers, facility managers, asset managers, brokers, appraisers, owners and others seeking insight into average income and expenses for commercial office buildings in specific markets will simply log on, specify markets and building parameters (such as size) and pull up information at their fingertips. The transition to the Web marks the culmination of extensive research, conducted by both BOMA International and Kingsley Associates among past EER users and data contributors, as well as non-EER users. The revolutionary format will offer features that no other benchmarking tool has: customizable Continued on page 60

58 BOMA May/June 2009

NATIONAL STRENGTH All too often, Property and Facility Managers face the unenviable challenge of trying to find service providers for properties located in several cities and states. The National Accounts team at U.S.Lawns can make this task much easier to manage by providing one contact to handle your needs no matter where your properties are located. From Miami to Maine, from the Carolinas to California we can provide you with the peace of mind you expect from a national company and the personal service your properties demand from a local company. At U.S.Lawns our primary focus is on the complete landscape management of commercial properties. Landscape maintenance, installation, irrigation, tree care, floricultural programs and snow removal services are a few of the many services we provide.

LOCAL COMMITMENT With nearly 200 offices in over 30 states we have the ability to manage your entire portfolio. As part of our National Account Program we assign an Account Manager to oversee the quality control, communication and financial aspects that are important in taking care of you and your business.

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research corner

search queries, graphic representations of each income and expense line item and options to export the charts to PDF or Excel format to save time and allow for their easy insertion into reports and presentations. Past submitters will also be able to see trend data based on previous years’ data. Throughout its 89-year history, the EER has undergone a number of innovations to enhance the information provided to the marketplace. The original EER, published in 1920, featured data from only 90 buildings in 37 cities in the United States. That first EER also tracked only a handful of performance measures, such as cleaning and electrical system expenses. Currently, the EER encompasses nearly 65 line items across the income and expense ledger, including such measures as income from other space (such as storage, ATMs, etc.), wire/ riser and telecom access and even rents earned from retail tenancies within office buildings. On the expense side, the EER tracks detailed expense performance, also in a variety of categories, such as utilities (both costs and consumption of various types of building resources); repairs and maintenance; and cleaning costs. Participation in the EER is entirely voluntary and free of charge; BOMA membership is not a requirement. By tracking and analyzing office building financial performance with such comprehensive detail, BOMA affords building owners and managers tremendous insight into their buildings’ performance relative to peer buildings. In the current economic climate, such information can be essential to add value to real estate assets. EER data can be used to help identify areas in which an office building outperforms the market, which can help retain tenants or

60 BOMA May/June 2009

recruit new ones. It can also be used to identify areas where the building’s operations need to be fine-tuned in order to stay competitive in the marketplace. A revolutionary new pricing structure will also allow users to purchase only those markets they need or purchase the entire data set. Those who submitted their 2008 building income and expense performance through the EER online survey will be able to purchase reports at discounted prices as well. Single markets can be purchased for $125 ($95 for submitters), and $25 for each additional market ($20 for submitters). In addition, subscribers can purchase the entire U.S. market for $250 ($195 for submitters). Corporate subscriptions will also be available to allow multiple users within a single firm to have access to the markets they need. The value of a data product like the EER for real estate professionals is its ability to be queried and customized to suit users’ individual needs. By going online this year, BOMA uses modern technology to deliver the same highquality data to which our customers and members have grown accustomed in the past. The new online EER will give property managers the tools they need to “stay ahead of the curves” the current market cycle is throwing at them!

How will the New Web-based EER Work? Those seeking benchmarking data will simply log on to www.bomaeer.com. Each user will create a login and password in order to access the site. Then, they will select the type of market (either a specific city or even a zip code), specify building parameters (size in square feet, height, age or primary use) and run the query. With a few quick clicks, users can customize reports to identify the data they need.

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Eye on Education

MOB Conference to Address Big Changes and Emerging Trends in Healthcare Real Estate By Emily Naden Each year, the BOMA International Medical Office Buildings and Healthcare Facilities Conference gathers the healthcare real estate elite—industry speakers, healthcare executives and hospital administrators—to “take the pulse” of the industry and educate attendees on the latest trends, models and transactions. As medical office buildings and other ambulatory centers play an increasingly crucial role in the delivery of healthcare, gaining insight on these issues becomes imperative. This year, the Medical Office Buildings and Healthcare Facilities Conference will be held June 25-26 at the Marriott Philadelphia Downtown.

What’s New this Year

Renowned economist Dr. Peter Linneman will deliver the annual Keynote Luncheon address with a focus on the economic crisis and the implications for healthcare providers and their real estate strategies. He will offer perspectives on what the future may hold for the capital markets and the capacity of the government stimulus program to resuscitate the capital markets, job growth and other economic conditions. Dr. Linneman is the founding chairman of Wharton’s Real Estate Department and Last year’s MOB Conference drew a record number of attendees.

the founding co-editor of the Wharton Real Estate Review. He was recently cited as one of the 25 most influential people in real estate by REALTOR® Magazine. The conference will feature general sessions designed to examine the implications of the capital markets crisis on the health of healthcare systems. “Gauging the Health of Healthcare Systems: A CFO Roundtable” features a distinguished panel of health system CFOs who will share their perspectives on the capital markets crisis and how their systems are responding to it, operating and investment performance trends, the impact of national healthcare reform and possible signs of stability and recovery. “CMS Reimbursements: What’s the Prognosis?” will focus on this critical component of healthcare providers’ and practitioners’ revenue streams. Reimbursement rates have failed to keep pace with inflation for the last 20 years. Amid the current economic crisis, the pressure on healthcare systems and doctors’ livelihoods is all the more acute and directly impacts the health of the real estate assets they own and lease.

Get on Track

This year, BOMA enhanced its successful healthcare real estate education tracks to meet the changing needs of the industry. The Capital Markets Track includes insightful sessions that will help you target capital markets for new opportunities. The session, “Market Opportunities? Getting Healthy Returns for Distressed Assets,” focuses on where new opportunities might be found, as well as the capital to work with them. The Provider Strategies Track, featuring sessions on new physician integration models, changing paradigms in healthcare delivery and a new wave for ambulatory strategy, offers insights into emerging models of healthcare delivery.

These sessions will provide in-depth analysis of these emerging trends and outline their implications for hospitals’ real estate holdings, development strategies and long-range plans. In this changing economic climate, how astutely you lease and manage facilities is becoming a factor in determining how you will weather the storm. Stay on top of the trends and pitfalls with the Leasing and Management Track, featuring sessions on providing customer service to physician tenants, recognizing and managing physician tenants’ financial stress and identifying new opportunities for trimming operating expenses.

Back by Popular Demand

Last year, a panel of distinguished speakers gave their opinions on where the healthcare real estate market was heading. This year, that same panel will return with “Second Opinions: The Health of the Capital Markets Redux” to discuss if and how their strategies have evolved over the last year and how wrong, or right, their predictions were. The panel will also discuss the question on everyone’s mind: Are MOBs recession-proof? Jonathan Winer, executive vice president of Seavest, Inc. and a former Medical Office Buildings Committee chair, promises to lead this session “Hardball-style”—no excuses. One of our most popular sessions, “Vital Signs: Trends in Healthcare Roundtable,” returns with a heavy-hitting panel to discuss how the stress affecting healthcare is growing and what that means for the facility side of the industry. The session also looks at how the healthcare plan of the Obama Administration could impact the delivery of healthcare itself. This is a can’t miss session. Continued on page 64

62 BOMA May/June 2009

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A Session for Whatever Ails You or Your Business

Here are just a few of the sessions at this year’s MOB Conference: • Deal Diagnosis: Equity Perspective • Getting Healthy NOI by Controlling Operating Expenses • Converting Leases: From Modified Gross to NNN • Physician Stimulus: What to Do When Doctors Need Help • Not Building New? Strategies for Existing Outpatient Facilities

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For more information, full session descriptions or to register, visit www. bomaconvention.org/MOB.

Education and Events Calendar Throughout 2009: Foundations of

Real Estate Management courses are being offered by BOMA local associations throughout the country from Los Angeles to Washington D.C. Please view the education calendar at www.boma.org for more information or contact Kristin Bowling at kbowling@boma.org. May 13: SOS Course 2: Strategies for Reducing and Reusing Building Resources, Webinar, 2:00pm ET June 10: BEEP Seminar 5: Valuing

Energy Enhancement Projects and Financial Returns, Webinar, 2:00pm ET

64 BOMA May/June 2009

June 25-26: Medical Office

Buildings and Healthcare Facilities Conference, Marriott Philadelphia Downtown, Philadelphia, Pa. www. boma.org/TrainingAndEducation/ MedicalOfficeBuildings

June 28-30: BOMA International

Conference and The Office Building Show, Pennsylvania Convention Center, Philadelphia, Pa., www.bomaconvention.org

July 22: SOS Course 3: Rethinking

BARTLETT. BEcAusE cusTomER sERvicE, jusT LikE TREEs, shouLd BE A BREATh of fREsh AiR. We’re Bartlett Tree Experts and we’ve been exceeding our customers’ expectations for over 100 years. No matter the size or scope of your tree and shrub needs, our experts bring a rare mix of local service, global resources and innovative tree care practices that makes your landscape thrive. Trees add value to your property. And Bartlett adds value to your trees.

Recycling—Beyond Paper and Cans, Webinar, 2:00pm ET August 19: SOS Course 4: How Green is My Building? Tools for Measuring the Total ROI of Sustainability, Webinar, 2:00pm ET September 16: No Mention of Money: Understanding the Economic Impact of “Nonfinancial” Lease Clauses, Webinar, 2:00pm ET

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October 7-9: IFMA World

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October 14: The Road to Renew-

als: Keeping Tenants Happy in a Depressed Economy, Webinar, 2:00pm ET November 11: BEEP Course 2: How

to Benchmark Energy Performance, Webinar, 2:00 pm ET December 2: BEEP Course 3: Energy-Efficient Audit Concepts and Economic Benefits, Webinar, 2:00pm ET

For detailed information on BOMA educational offerings, contact Kristin Bowling at kbowling@ boma.org or visit www.boma.org/ TrainingAndEducation

For detailed information on upcoming industry events, visit www.boma.org/Events

May/June 2009 BOMA 65

buyers’ guide

Buyers’ Guide to Building Products and Services PRODUCT

DETAILS Nalco 360 Helps Improve Water System Performance Nalco has developed a comprehensive new monitoring, control and alarming service to improve water system operations, reducing risk and saving water and energy. Nalco 360™ service is supported by a team of water treatment experts who monitor the system to ensure it is operating in accordance with best practices. In addition, alarm responses provided by the expert center guide water system managers on the appropriate action needed to mitigate the issue or inefficiency. Weekly and monthly report/charts are automatically sent to users so they can understand the trends and issues affecting their system and can reduce their total cost of operation.

For more information, visit www.nalco.com

Eco-Friendly Flow Fresh Maintains Drain Health in Restrooms American Leak Detection has developed Flow Fresh™, a cost-effective and eco-friendly solution to drain line and odor problems in commercial building restrooms. Flow Fresh works by using a bio enzymatic formula that softens and breaks down uric crystals at the source, thereby preventing blockages, backups and odors while deodorizing. With the use of Flow Fresh, businesses can also benefit from the reduction of water consumption by half a gallon per urinal per flush. The product works just as effectively on waterless urinals, allowing the powerful microbes to keep urinals free flowing and odor free.

For more information, visit www.AmericanLeakDetection.com

RPA/FMA/SMA/SMT ACCELERATED COURSES Design, Operation & Maintenance, Part II May 13, 2009 Ethics Is Good Business ShortCourse June 11, 2009 Law & Risk Management July 29, 2009 Electrical Systems & Illumination Aug. 19, 2009 Real Estate Investment & Finance Aug. 26, 2009 Asset Management Sept 16-19, 2009 Leasing & Marketing Sept. 23, 2009 Facilities Planning & Project Management Oct. 7, 2009 Energy Management and Controls Oct 21-24, 2009 Environmental Health & Safety Issues Nov. 4, 2009 Ethics Is Good Business ShortCourse Dec. 7, 2009

66 BOMA May/June 2009

Why Measure Your Building’s Performance in the Dark? Shed new light on income and expenses with the new online EER...coming in June! Share Data. Improve Performance. Achieve Excellence.

The revolutionary, new Experience Exchange Report® makes it easier than ever before to get the market information you need to fortify your asset value and streamline your business processes. No more books or CDs…simply log on, download and use the data in infinite ways... � Build budgets

� Evaluate operating performance � Identify areas for savings

� Communicate performance metrics to owners

and investors, tenants and prospective tenants.

It’s so illuminating, no other product can hold a candle to it.

Buy the EER at www.bomaeer.org

Analyze your property’s performance with custom search tools... it’s faster, flexible and as easy as 1-2-click.

Buy only the market reports you need and save money! Hundreds of reports are available for the U.S. and Canada.

Chart performance graphically for any income or expense line and much more.

buyers’ guide PRODUCT

DETAILS New Kynar Aquatec Emulsions Deliver Energy-Efficient Roofing Solutions Kynar Aquatec®, an innovative new platform of emulsions developed by Arkema Inc., is raising the industry standard for durability and performance of water-based roof coatings. Field-applied protective surface coatings formulated with the Kynar Aquatec PVDF waterborne technology have excellent adhesion and can be easily applied to a variety of roofing substrates, including metals, plastics, wood, concrete and textiles. Kynar Aquatec emulsions last longer than conventional roof coatings, making them a durable and energy-efficient solution for any roof coating application. The low-VOC coating provides outstanding water repellency, with exceptional resistance to dirt pickup and biological growth.

For more information, visit www.kynaraquatec.com

Carlisle SynTec’s DryLight Increases Energy Savings Carlisle SynTec, a leading manufacturer of commercial roofing systems, has introduced DryLight™, a skylight with fully encapsulated glazing that is designed to provide both enhanced energy savings and extended warranty coverage when installed on commercial buildings. The unique thermoplastic retainer frame is non-conductive and provides a thermal efficiency that is greater than that of metalframed skylights. When used in conjunction with photo-sensor or light-dimming controls, DryLight can provide significant energy savings by reducing the use of electrical lighting, lowering peak electrical loads and minimizing overall operating costs.

For more information, visit www.carlisle-syntec.com

E-Mon Offers Advanced Internet-Based Energy Monitoring E-Mon, LLC, a leader in the electric submetering market, has debuted the Web-Mon™, an Internetenabled energy monitoring device that provides energy data via any standard Internet browser. A built-in Web site right out of the box, Web-Mon requires no add-on software or programming to provide a “dashboard” display of various energy parameters of up to 24 meter inputs. Real-time meter data is displayed alongside historic readings from the previous seven, 30 and 365 days. A “carbon footprint dashboard,” also standard, provides a one-page snapshot of any metered device or circuit in terms of carbon dioxide, sulfur dioxide and nitrous oxide emissions, while automatically displaying estimated forest re-growth needed to compensate for the displayed levels.

For more information, visit www.emon.com

Cypress Envirosystems Introduces Wireless Pneumatic Thermostat The Cypress Envirosystems Wireless Pneumatic Thermostat is a high-performing solution for your building’s temperature-control needs. The Wireless Pneumatic Thermostat takes just minutes to install with no disruption to existing systems or tenants and can be installed for about one-fifth the cost of a Direct Digital Control retrofit. It enables automatic zone-by-zone scheduling of temperature set-point changes, automatic calibration, remote monitoring of temperature and pressure and the ability to control and track after-hours HVAC usage.

For more information, visit www.cypressenvirosystems.com

ADVERTISING INDEX Company Page No. AlliedBarton Security Services.................... 7 American Anchor..................................... 5 Artscape Inc.........................................C4 Bartlett Tree Experts.............................. 65 Berkshire Green Builders......................... 69 Bobrick Washroom Equip. Inc.................... 9 BOMA Atlanta...................................... 66 BOMA International.............. 25, 63, 67, C3 Certified Conveyance Training................. 69 Chem-Aqua..........................................58 Distech Controls....................................23 Dorlen Products.................................... 65 Dow Roofing Systems............................ 49 Draka Elevator...................................... 24 Duro-Last Roofing..................................38 E-Mon, LLC.......................................... 13 Fujitec America Inc................................. 41 Fuller Phoenix Architectural...................... 14

68 BOMA May/June 2009

Company Page No. G4S-Wackenhut...................................... 11 The Garland Company Inc....................... 66 Griswold Controls.................................. 12 Healthy Buildings Intl............................. 56 Huguenot Laboratories........................... 60 Jamestown Technologies......................... 54 McNabb Construction........................... 69 Metal Roof Innovations Ltd.-S-5!............. 56 Mitsubishi Electric-HVAC Canada.............. 19 Mitsubishi Electric & Electronics USA........ 31 NCFI...................................................22 NECA.................................................. 21 NECA-IBEW-Chicago............................. 51 Next Parking LLC................................... 16 Painters & Allied Trades Labor Management Cooperative Initiative (LMCI)................... 15 Pavement Network................................C2 Peak Fall Protection (formerly McClancy).. 64

Company Page No. PF Waterworks....................................... 14 Plasteco.............................................. 69 Quality Filters Inc................................... 10 RoofMart Intl. Inc. (RMI)........................ 16 Shortridge Instruments Inc...................... 54 Solutia Performance Films/Saflex............... 17 Spartan Chemical Company...................... 8 Spot Coolers.......................................25A Textured Coatings of America-HQ............ 39 ThyssenKrupp Elevator............................53 Tile & Stone Works................................ 69 Universal Protection Services.................... 61 U.S. Green Building Council-USGBC........ 42 U.S Lawns........................................... 59 ValleyCrest...........................................55 Verdissimo........................................... 64 VideoComm Technologies...................... 40 Weishaupt Corporation............................57

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Avoid Elevator and Escalator Litigation and Fines

An inadequately written elevator-escalator maintenance control program leaves owners exposed to fines and lawsuits. A service contract or agreement alone is not sufficient to protect the owner.

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800-231-6117 X307 Email: fallguard@plasteco.com Website: www.plasteco.com

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May/June 2009 BOMA 69

conference connection

The BOMA International Conference Every and The Office Building Show ^ June 28-30, 2009 Philadelphia, Pa.

These aren’t Typical Times, and This isn’t a Typical Tradeshow The Office Building Show has Your Solution Everything is on the line. It’s a time of rapid events and unpredictable consequences. Real estate professionals face challenges in every area. But when the going gets tough, The Office Building Show gets going—with the resources, relationships, products and services that can transform the way you do business.

Come with questions. Leave with solutions. In an industry this big, you can bet that someone else has faced the same challenges you have. And has come up with a proven way to solve them. No matter what they are, no matter how big or small. We’ve made sure that the best minds, best products and best services will be assembled here for your benefit and to save you money.

Meet problem solvers. Not product sellers. The typical tradeshow revolves around buyers and sellers. This isn’t your typical tradeshow. This is the preeminent gathering of commercial real estate professionals in 2009. We make sure all of the exciting new products and services will be here. We also make sure the focus is on you. This show is not about the hard sell. It’s about solving the problems you need solved. It’s part of what makes this show such a compelling value.

Maximize asset value in any economic climate. Which way is the wind blowing? Every way. We understand. But we want you to leave The Office Building Show ready and able to take action. It’s time to switch from reactive to proactive mode. To take control of those things that can be controlled. To manage your destiny, and your property, no matter what the economy throws at you.

Green times call for green solutions. As the market for green and energy efficiency grows, BOMA’s partnership with the EPA’s ENERGY STAR program has made the BOMA Green Pavilion and ENERGY STAR® Showcase the most valuable resource of its kind. You’ll discover ways to save energy, save the earth and save a bundle from expert exhibitors representing the top suppliers of green and energy-efficient solutions. For more information or to register for The BOMA International Conference and The Office Building Show, June 28-30 in Philadelphia, Pa., visit www.boma convention.org.

70 BOMA May/June 2009

More Reasons to Come On Every Engineer’s Wish List. If you attend The Office Building Show on Monday or Tuesday, you can enter to win a FREE Mobile-Shop®. Developed by industry professionals, the Mobile-Shop is the new standard in professional building maintenance. The Mobile-Shop includes 230 professional quality tools and 160 parts—all accountable in 60 seconds. With an anti-theft system and the opportunity to customize it by adding your own specialty tools and parts, the Mobile-Shop creates a powerful new standard that brings maintenance operations to new levels of efficiency and professionalism.

Green Your Life— Win a Vespa Scooter. Motor scooters are the original green alternative to gas-guzzling automobiles. You’ll have two chances to win one of these iconic vehicles—we’re giving away one on Monday and another on Tuesday.

In these tough economic times, could your building use a competitive edge? Many firms are struggling to retain tenants, reduce operating expenses and enhance asset value. The groundbreaking new BOMA 360 Performance Program can help distinguish your proper t y in a demanding market. It â&#x20AC;&#x2122;s designed to validate and recognize commercial properties that demonstrate best practices in all major areas of building operations and management. By achieving the BOMA 360 Performance designation for your building, you demonstrate to owners, tenants and prospective tenants that your property is being managed to the highest standards of excellence. For more information on how the BOMA 360 Performance Program can give you an edge, please visit us at www.boma.org.

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